Which type of barrier to entry allows an electric company to maintain a monopoly over the production of electricity?
A. economies of scale
B. diseconomies of scale
C. ownership of a scarce factor of production
D. a patent
Answer: A
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A situation in which each firm selects its best action, given what its rivals are doing, is called a
A) Nash equilibrium. B) Cooperative equilibrium. C) Stackelberg equilibrium. D) zero sum game.
Which of the following statements about markets is false?
a. markets are used to allocate resources in market systems b. markets can vary in geographical size c. prices are used to allocate goods in markets d. markets are used to allocate resources in centrally-planned socialist economic systems e. supply and demand explains how prices are set in competitive markets
If a prospective employee is not offered his/her reservation utility or reservation wage, then he/she will
A. tend to look for another job or withdraw from the labor market. B. seek a larger fringe benefit package. C. accept the job because a wage below the reservation utility is very attractive. D. use the job as the basis for a career, assuming that wages will increase beyond the marginal revenue product over time.
The Bureau of Labor Statistics (BLS) would calculate the rate of inflation in year 5 by
What will be an ideal response?