Oil companies lobbying the government for gasoline price supports are engaging in rent-seeking behavior.
Answer the following statement true (T) or false (F)
True
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A natural monopoly that is regulated to set its price according to the marginal cost pricing rule will
A) incur an economic loss. B) maximize its profit. C) produce a quantity of output such that price is above average total cost. D) produce a quantity of output such that marginal cost is above average total cost.
A duopoly is
a. a cartel in which all members try to cheat on the cartel. b. an industry with only two sellers. c. an industry with only two buyers. d. a cartel with only two members.
When a corporation decides to include its own corporate stock as part of the compensation for its employees, it is trying to solve the
a. adverse selection problem. b. principal-agent problem. c. lemons problem. d. signaling problem.
The multiplier effect is most potent when ______.
a. expenditures on one type of resource are replaced by another b. idle resources are brought into production c. it makes productive resources idle d. all economic resources are already fully employed