What would be the impact if the government forced the breakup of a natural monopoly to promote greater competition in an industry?
a. Smaller firms would have a cost advantage over larger firms.
b. The price paid by consumers would be unchanged
c. The average cost of producing the good would increase.
d. The average cost of producing the good would decrease.
c
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Suppose you purchase a new home for $150,000, making a down payment of 10% and taking out a mortgage on the balance. What is the return on your investment in your home if one year later the price of your home decreases by 20%?
A) -10% B) -30% C) -50% D) -200%
If a 10 percent rise in the price of bananas leads to a 20 percent reduction in the quantity of bananas demanded, then the price elasticity of demand is 2.00
a. True b. False
If the value of non-cash assistance to the poor were included in their income
A. the official number of persons classified as poor would be higher. B. the official number of persons classified as poor would be lower. C. the poverty income threshold would decrease. D. the poverty income threshold would increase.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point B to Point D, the opportunity cost of motorcycles, measured in terms of hybrid cars,
A. increases B. remains constant. C. initially increases, then decreases. D. decreases.