If a firm is a natural monopoly, society will benefit if it is broken into several small companies
a. True
b. False
Indicate whether the statement is true or false
False
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Suppose you pre-ordered a non-refundable movie ticket to X-Men: Apocalypse. On the day of the movie you decide that you would rather not go to the movie. According to economists, what is the rational thing to do?
A) You should go to the movie to maximize your utility. B) You should not waste resources. Since you have paid for the ticket you should watch the movie. C) Your should go to the movie to minimize your losses. D) Since the cost of the movie ticket is a sunk cost, it should not influence your decision. Your decision should be based solely on whether you want to see the movie or not.
Which of the following countries has a flat SAS curve?
A) Brazil B) U.S. C) Argentina D) All of the above.
The United States need never pay off the national debt; it can simply refinance the debt when it comes due. The flaw in thinking that the government must pay it off is based on the fallacy of
a. benefit-cost ratio. b. post hoc, ergo propter hoc. c. composition. d. a priori expectations.
Which of the following is true about the price elasticity of demand on the top part of a linear demand curve?
a. Demand is inelastic. b. Demand is unitary elastic. c. It is impossible to tell. d. Demand is elastic.