In natural and platform monopolies, economists argue that regulation:
A. is not explicitly desirable, and society should rather rely on direct competitive forces.
B. is desirable, and should involve strict enforcement.
C. is irrelevant.
D. should be heavily enforced by government.
Answer: A
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The elasticity of demand is used to
A) determine if consumers will or will not buy a product. B) measure how responsive consumers are to a change in price. C) determine in what direction the demand curve shifts if income changes. D) find the market equilibrium. E) determine if a change in price results in a shortage or a surplus.
Which of the following statements is correct for a monopolist? (i) The firm maximizes profits by equating marginal revenue with marginal cost. (ii) The firm maximizes profits by equating price with marginal cost. (iii) Demand equals marginal revenue. (iv) Average revenue equals price
a. (i), (iii), and (iv) only b. (i) and (iv) only c. (i), (ii), and (iv) only d. (i), (ii), (iii), and (iv)
The Federal Reserve System is divided into:
A. 5 districts. B. 12 districts. C. 15 districts. D. 7 districts.
What is the most common type of business?
A) corporation B) partnership C) sole proprietorship D) They are equally represented because of federal laws.