If a natural monopoly was broken into several smaller competing firms,
A. Producers would be better off because they would have greater market share.
B. Consumers would lose because of less competition.
C. Workers would be worse off because fewer jobs would be available.
D. Society would be worse off because the economies of scale would be destroyed.
Answer: D
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An ethanol processing plant operates relatively efficiently when operating at its designed "capacity". The firm is willing to pay more for delivery of corn to maintain this level of output. This indicates that the firm is likely to experience ______ (higher, lower, the same) average total costs operating at less than this level of output.
a. Higher b. Lower c. The same
Suppose $1 = 0.85 euros in New York, 1 euro = 150 yen in Paris, and 1 yen = $0.008 in Tokyo.a. If you begin by holding $1, how could you profit from these exchange rates? What is your arbitrage profit per dollar initially traded?b. Identify the forces at work that will make the exchange rates consistent with each other in this situation. That is, what forces will lead to a situation in which no profitable arbitrage is possible?
What will be an ideal response?
A monopoly's marginal revenue is equal to the market price of its product
Indicate whether the statement is true or false
Assume that the demand curve for DVD players shifts to the left and the supply curve for DVD players shifts to the right, but the supply curve shifts more than the demand curve. As a result
A) both the equilibrium price and quantity of DVD players will decrease. B) the equilibrium price of DVD players will decrease; the equilibrium quantity may increase or decrease. C) the equilibrium price of DVD players may increase or decrease; the equilibrium quantity will increase. D) the equilibrium price of DVD players will decrease; the equilibrium quantity will increase.