Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential
B. higher; higher
C. lower; higher
D. higher; potential
Answer: D
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Regulation that is based upon the cost of providing the good or service is known as
A) rate-of-return regulation. B) cost-of-service regulation. C) social regulation. D) deregulation.
Some years ago, Stuyvesant Town and Peter Cooper Village in Manhattan were sold for redevelopment. These villages had been rent controlled, but now that these neighborhoods are no longer rent controlled, one would expect the:
A. houses to be not as well maintained since rent will be so high. B. rent to rise in those neighborhoods. C. housing shortage in the neighborhood to worsen. D. quantity of rentals demanded to rise.
The manager of Steel Works learns of a new technological interdependency between the final stage of production and the distribution of the final product. If Steel Works currently contracts with another firm to distribute the product, which of the following is true?
A) The manager has less of an incentive to integrate forward. B) The manager has more of an incentive to integrate forward. C) The manager has more of an incentive to integrate backward. D) The manager has less of an incentive to integrate backward.
Profits of a monopoly are driven to zero
a. In the long-run as all assets are mobile in the long-run b. Immediately in the short-run as assets move from low-valued uses to high-valued uses instantly c. In the long run because the demand curve becomes more inelastic d. In the short run because the demand curve becomes more elastic