What do economies of scale, the ownership of essential raw materials, and patents have in common?
A. They must all be present before price discrimination can be practiced.
B. They are all barriers to entry.
C. They all help explain why a monopolist's demand and marginal revenue curves coincide.
D. They all help explain why the long-run average cost curve is U-shaped.
Answer: B
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In the above figure, the competitive unregulated equilibrium is producing and consuming ________ tons of paper at a price of ________ per ton
A) 100; $150 B) 100; $100 C) 100; $50 D) 200; $100
Suppose y = Ak1/4, the capital-labor ratio is $40,000 per worker, the level of total factor productivity is 800, 70% of the population works, and there are 70 million workers. Real GDP per capita is
A) $3,500.00. B) $5,543.72. C) $7919.60. D) $9,899.50.
Mary Beth is risk averse and has $1,000 with which to make a financial investment. She has three options. Option A is a risk-free government bond that pays 5 percent interest each year for two years. Option B is a low-risk stock that analysts expect to be worth about $1,102.50 in two years. Option C is a high-risk stock that is expected to be worth about $1,200 in four years. Mary Beth should
choose a. option A. b. option B. c. option C. d. either A or B because they are the same to her.
In 1981, Japanese auto manufacturers signed a "voluntary restraint agreement" that limited the number of cars they would export to the United States. The effect of this was to
A. increase the price that dealers obtained for Japanese cars in the United States. B. lower the quantity of domestic cars available to American buyers. C. benefit Japanese auto manufacturers by reducing the number of cars they had to ship to the United States, allowing them to sell more in their domestic market. D. drive down the price of Japanese cars compared to U.S.-made cars.