Which of the following will occur if a natural monopoly is broken into two smaller firms?
A. The price will drop.
B. Industry output will increase.
C. Production costs will increase.
D. Industry output will decrease.
Answer: C
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In the above figure, if we begin at S1 and the Fed sells bonds
A) the price of bonds rises, and so does the interest rate. B) the price of bonds falls, and the interest rate rises. C) the price of bonds rises, and the interest rate falls. D) the price of bonds falls, and so does the interest rate.
All along the beach in San Diego, California are shops which rent boogie boards by the hour
Tourists perceive that all rental boogie boards are identical, all prices are clearly listed on signs in front of the shops, and there are no restrictions on entry and exit in the boogie board market. What type of market is the boogie board market? A) monopoly B) oligopoly C) monopolistic competition D) perfect competition
How is the international economy qualitatively different in the first part of the twenty-first century from what it was like in the first part of the twentieth century?
What will be an ideal response?
If a firm triples inputs and produces three times the output, then there are
A) constant returns to scale. B) diminishing marginal product. C) decreasing returns to scale. D) increasing returns to scale.