Some electrical utilities are monopolies because of
A) government restrictions that prevent new firms from entering the market.
B) ownership of resources without close substitutes.
C) diseconomies of scale.
D) their inability to earn profits.
A
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I. To maximize profit, a firm will increase its advertising expenditures until the last dollar of advertising generates an additional dollar of revenue. II. The full marginal cost of advertising is the sum of the dollar spent directly on advertising and the marginal production cost that results form the increased sales that advertising brings about. A) Both I and II are true. B) I is true, and II is false. C) I is false, and II is true. D) Both I and II are false.
Suppose you order a slice of pepperoni pizza and a soda at a shopping mall food court. What are examples of the opportunity costs of this decision?
What will be an ideal response?
Economic value of a transaction where the buyer is allowed to deal with several sellers at the same time will always be higher than a transaction which ties the buyer to a particular seller by contract
Indicate whether the statement is true or false
If policymakers accommodate an adverse supply shock, then in the short run the unemployment rate
a. and the inflation rate rise. b. and the inflation rate fall. c. rises and the inflation rate falls. d. falls and the inflation rate rises.