Consider a monopoly who posts an economic profit of $10,000,000. All else equal, this monopolist should expect
A) entry into its market, prices to fall, profits to fall.
B) no entry into its market, prices to remain the same, profits to remain the same.
C) exit from its market, prices to rise, profits to rise.
D) entry into its market, the need to increase price, profits to remain the same.
B
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Travel Expert is a corporation that specializes in selling vacation packages in Transylvania and Stansylvania. There are a fixed number of shares of Travel Expert's stock available to the public. If the two countries go to war, making it much more dangerous to travel there, what will most likely happen to the Travel Expert's share price and the number of shares outstanding?
a. Price will fall; number of shares will fall. b. Price will fall; number of shares will rise. c. Price will rise; number of shares will remain the same. d. Price will remain the same; number of shares will fall. e. Price will fall; number of shares will remain the same.
Monetary policy involves the use of money and credit controls to:
A. Move the economy along the aggregate demand curve. B. Move the economy along the aggregate supply curve. C. Shift the aggregate demand curve. D. Shift the aggregate supply curve.
Under an average-cost pricing policy:
A. a regulatory agency picks a price equal to a natural monopoly's marginal cost. B. a regulatory agency picks a price equal to a natural monopoly's average fixed cost. C. a regulatory agency picks a price at which a natural monopoly's demand curve intersects its average cost curve. D. firms earn economic profits greater than zero.
Why did the USSR collapse and China succeed? Explain
What will be an ideal response?