The loss of the profit motive by a publicly owned natural monopoly could:
A. increase the motivation to improve efficiency.
B. reduce the motivation to improve efficiency.
C. increase the incentive to provide better service.
D. increase the incentive to lower costs.
B. reduce the motivation to improve efficiency.
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Because markets may not clear for several months or even several years, the classical model
a. is no longer considered valuable by mainstream economists b. has no value when explaining a situation where excess supply exists c. is irrelevant to any discussion of a market in which excess demand exists d. does a better job of explaining short-term fluctuations than long-run growth e. does a better job of explaining long-run growth than short-run fluctuations
Monopolistic competition is different from perfect competition in that every manufacturer
a. has a small monopoly, and differentiates the product. b. takes the product quality as given, and chooses price. c. takes output level as given, but must choose price. d. differentiates product, but cannot advertise successfully.
As Jamal's income rises, his demand for pizza does not change. It follows that, for Jamal, pizza is a(n)
A) normal good. B) inferior good. C) neutral good. D) substitute good. E) complementary good.
Governments may attempt to protect dairy farmers from low milk prices by:
A. reducing subsidies on the price of milk. B. increasing taxes on dairy farmers. C. setting a minimum price on milk. D. banning the hoarding of milk by households.