Adam Smith believed that monopoly is the most efficient market structure.
Answer the following statement true (T) or false (F)
False
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If production of a good creates an external cost, the amount of output where the marginal social benefit equals the marginal private cost is
A) inefficient. B) inequitable. C) unattainable. D) efficient.
To maximize joint profits, a cartel must determine the level of output at which:
A) joint marginal revenue equals the marginal cost of the largest member of the cartel. B) marginal revenue equals joint marginal cost. C) the horizontally sum of the members marginal cost curves is at a minimum. D) joint marginal revenue equals the marginal cost of the smallest member of the cartel.
As the price level rises, the interest rate
a. falls, so the supply of dollars in the market for foreign currency exchange shifts left. b. falls, so the supply of dollars in the market for foreign currency exchange shifts right. c. rises, so the supply of dollars in the market for foreign currency exchange shifts left. d. rises, so the supply of dollars in the market for foreign currency exchange shifts right.
The fewer the number of firms present in a market, the:
A. more likely market power will exist. B. less like a monopoly it will behave. C. less likely barriers to entry are present. D. more competition is likely to be present.