Some electrical utilities are monopolies because of
A. diseconomies of scale.
B. their inability to earn profits.
C. ownership of resources without close substitutes.
D. government restrictions that prevent new firms from entering the market.
Answer: D
You might also like to view...
When the Treasury acquires gold or SDRs, it issues certificates to the ________, which are a claim on the gold or SDRs, and in turn is credited with deposit balances at the ________
A) Federal Reserve System; Fed B) Federal Reserve System; IMF C) International Monetary Fund; Fed D) International Monetary Fund; IMF
A market is said to "clear" when
A) sellers give up selling their goods because they can't find any buyers. B) buyers and sellers are able to buy and sell as much as they want at the market price. C) the government decides to shut it down. D) sellers run out of goods to sell.
As the marginal propensity to consume (MPC) increases, the spending multiplier:
a. increases. b. decreases. c. remains constant. d. becomes undefinable.
Which of the following is a valid effect of monopoly power?
a. Desirable effects on the distribution of wealth. b. Efficient resource allocation. c. Fostering of innovation. d. Obstacle to efficiency.