Assume someone organizes all farms in the nation into a single-price monopoly. As a result, the amount of food produced
A) remains constant.
B) decreases.
C) increases.
D) might increase or decrease depending on whether the demand for food is elastic or inelastic.
E) might increase or decrease depending on whether the monopoly's marginal revenue curve lies below or above its demand curve.
B
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Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
All of the following entry methods provide firms with familiarity with a foreign market, expect which one?
A) partnership B) merger C) independent entry D) joint venture
People do not usually behave in a noncooperative fashion even when it is in their immediate interest to do so because
A) they realize such behavior is immoral. B) they know there can be 2 winners. C) they know they will have repeated dealings with the other people. D) they understand the difficulties with game theory.
Which of the following is true when collective decision making is utilized to resolve economic questions regarding the allocation of resources?
What will be an ideal response?