Monopoly profits lead to technological process by
A) increasing the amount of human capital in the economy.
B) firms lobbying Congress for protection of their monopolies.
C) carefully investing deadweight loss.
D) encouraging the development of innovations by firms attempting to break a monopoly.
D
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A budget constraint represents the:
A) inequality in the incomes earned by various economic agents. B) aggregate income earned by all the firms in an economy. C) total money income that an agent earns in different time periods. D) goods and services an economic agent can choose given her limited income.
Net present value and internal rate of return capital budgeting decisions can differ because
A) the initial costs of the capital outlays differ. B) the cash flow streams differ. C) the discount rates differ for different time periods. D) All of the above
The city of Austin can buy roads or light rail. If 10 miles of roads cost $1 million and 2 miles of light rail cost $10 million, what is the city's opportunity cost of 1000 miles of roads?
a. $100 million b. 2 miles of light rail c. 200 miles of light rail d. $50 million e. $1,000 million
In the short run, the additional output that results from hiring an additional unit of a variable input is the
A) marginal product. B) average product. C) average variable cost. D) marginal cost.