Which of the following statements is correct?
a. Public ownership is preferred to regulation in order to minimize the deadweight losses associated with natural monopolies.
b. Antitrust laws are always the best way to limit monopoly power.
c. It is possible that the best approach to monopolies is for the government to do nothing.
d. Marginal-cost pricing requires a natural monopoly to earn zero economic profits.
c
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The Fed seeks to promote stability of financial markets because
A) resources are lost when there is not an efficient matching of savers and borrowers. B) they want to lift the self-esteem of workers. C) unstable markets result in increased efficiency. D) Congress directed them to do so by the Employment Act of 1946.
Holding large amounts of bank capital helps prevent bank failures because
A) it means that the bank has a higher income. B) it makes loans easier to sell. C) it can be used to absorb the losses resulting from bad loans. D) it makes it easier to call in loans.
Marginal cost is the ____________ cost of producing one additional unit and marginal revenue is the_____________ revenue of selling an additional unit
a. Incremental, Incremental b. Total, Incremental c. Incremental, Total d. Total, Total
The MR schedule can be obtained from the TR schedule by:
a. adding two successive values in the TR schedule. b. subtracting the succeeding TR value from the preceding TR value. c. subtracting the preceding TR value from the succeeding TR value. d. multiplying two successive TR values. e. dividing the succeeding TR value by the preceding TR value.