In the absence of a subsidy, production efficiency by a natural monopolist will
A. Be achieved if price is set equal to marginal cost.
B. Be achieved if marginal revenue is set equal to marginal cost.
C. Never be achieved.
D. Be achieved if price is set equal to average total cost.
Answer: C
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Refer to Table 8-1. Suppose that a simple economy produces only four goods and services: sweatshirts, dental examinations, coffee drinks, and coffee beans. Assume all of the coffee beans are used in the production of the coffee drinks. Using the information in the above table, nominal GDP for this simple economy equals
A) 3,090 units.
B) $7,250.
C) $8,750.
D) $9,750.
Suppose two countries have per capita real GDP of $20,000 in 2017. Country A has a growth rate of 4 percent and Country B has a growth rate of 5 percent. By 2020, the per capita real GDPs for the two countries, respectively, are (rounded)
A. $22,400 and $23,000. B. $25,000 and $26,500. C. $21,630 and $22,050. D. $22,500 and $23,150.
A demand curve with continuously changing slope over all quantity values will always have a constant price elasticity of demand.
Answer the following statement true (T) or false (F)
Generally, if a nation imposes a tariff on imports,
a. part of the tax is paid by foreign exporters. b. the entire tax is paid by foreign exporters. c. none of the tax is paid by foreign exporters. d. the tax has no impact on the profits of foreign exporters.