When the government makes a firm the exclusive legal provider of a good or service, it grants the firm
A) a network externality. B) a copyright.
C) a quota. D) a public franchise.
D
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What are the likely consequences of providing monetary incentives to politicians for good performance?
What will be an ideal response?
In the short run, a monopolistic competitor
A) produces at minimum efficient scale. B) produces where P = AC. C) sets P = MC. D) sets MR = MC.
Grocery store chains advertise more than convenience stores because:
A) the advertising elasticity of demand is smaller for grocery store chains than for convenience stores. B) convenience stores have more elastic demand for their products than grocery store chains. C) the advertising elasticity of demand for convenience stores is near zero and is much smaller than for grocery store chains. D) all of the above E) none of the above
Answer the following questions true (T) or false (F)
1. The term "trust" in antitrust refers to a board of trustees that has collusive control over different companies. 2. Economic efficiency requires that a natural monopoly's price be set corresponding to the quantity where marginal revenue equals marginal cost. 3. A decrease in the unemployment rate may be represented as a movement from a point on the production possibilities frontier to a point outside the frontier.