Natural monopolies occur when there are
A) large diseconomies of scale.
B) external economies.
C) large economies of scale.
D) natural resources involved.
C
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Because of diminishing marginal utility, you
A. should never buy more than one unit of a good, since additional units decrease your total utility. B. have to consider the effect of additional units on your total utility when you make purchases. C. wind up paying for units that you receive no benefit from. D. always want to increase your consumption of a good until the marginal utility you get is zero.
For a country with a fixed exchange rate, foreign exchange reserves are
A) an asset of the domestic government. B) a liability of the domestic government. C) held by private banks. D) are unnecessary.
In comparing long-run and short-run costs, which of the following statements is true at each level of output?
a. long-run total cost is always less than short-run total costs b. long-run total cost cannot exceed short-run total cost c. long-run and short-run total costs are equal when fixed costs are large d. firms usually make decisions about production levels based on long-run costs rather than short-run costs e. short-run total cost cannot exceed long-run total cost
Which of the following describes Ralph?
Ralph loves to watch public television but never sends any money to support the local station. a. He is a free rider getting benefits without paying any costs. b. He has a positive externality from television watching. c. He has a negative externality from television watching. d. He is a free rider paying costs without receiving any benefits.