A natural monopolist that sets prices equal to marginal cost will:
A. set a price greater than average total costs.
B. be inefficient.
C. incur losses.
D. earn zero accounting profits.
C. incur losses.
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?Monopoly power can last only if there are legal barriers to entry for other firms.
Answer the following statement true (T) or false (F)
Colorado State University allocates 10,000 tickets for each home game to students at no cost. Students are required to stand in line and prove they are a full time student to receive a free ticket
How is the scarce resource in this example allocated? A) first-come, first-served B) market price C) contest D) lottery
The abnormal net income model
A) assumes that economic profits cannot be earned in the short run. B) assumes that economic profits cannot be earned in the long run. C) employs economic profit in its valuation of a firm. D) none of these choices.
In the production function Real GDP = T (L, K, NR, H), the T represents the _____________ coefficient, the L represents ________________, the K represents _______________, the NR represents natural resources, and the H represents ________________
A) tax; labor; capital; humanity B) technology; labor; knowledge; humanity C) technology; labor; capital; human capital D) trade; labor; knowledge; human capital