If the government grants a patent to Firm A for the production of Good A, then the market for Good A will be:
a. an oligopoly
b. a monopoly.
c. perfectly competitive.
d. a duopoly.
b
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How is average variable cost calculated? If a firm has total variable costs of $19,200 when producing 575 units, what is the firm's average variable cost?
What will be an ideal response?
Assume that the central bank increases the reserve requirement. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and current international transactions in the context of the Three-Sector-Model?
a. The real risk-free interest rate rises, and current international transactions become more negative (or less positive). b. There is not enough information to determine what happens to these two macroeconomic variables. c. The real risk-free interest rate rises, and current international transactions become more positive (or less negative). d. The real risk-free interest rate and current international transactions remain the same. e. The real risk-free interest rate falls, and current international transactions become more negative (or less positive).
Which of the following is the preferred strategy for the government to follow to remedy the inefficient allocation of resources associated with monopolies?
a. preventing mergers through antitrust laws b. regulating the prices that monopolies can charge c. doing nothing d. None of the above strategies is preferred. Each is a viable strategy.
In which of the following situations will both market clearing price and the equilibrium quantity increase?
A. an increase in demand with no change in supply B. an increase in supply with no change in demand C. a decrease in supply with no change in demand D. a decrease in demand with no change in supply