Economists criticize monopolies because monopolies
A) always price discriminate.
B) receive accounting profits.
C) restrict output and raise prices compared to a competitive situation.
D) make consumers pay more for their product than the customers value the product.
Answer: C
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The tax cuts of 2008 and 2009 reduced the disposable income of U.S. consumers.
Answer the following statement true (T) or false (F)
One reason stagflation is difficult to recover from is because:
A. less output requires less inputs to be hired. B. prices tend to adjust more quickly downward than upward. C. wages are sticky downward. D. input prices increase with output prices.
A government-owned monopoly is more likely to:
A. provide output at a lower price than a private one. B. provide a greater quantity of output than a private one. C. serve public interest than maximize profit. D. All of these statements are true.
Reductions in employment in the U.S. auto industry caused by the increased adoption of new technologies to produce cars more efficiently is an example of
A. cyclical unemployment. B. frictional unemployment. C. seasonal unemployment. D. structural unemployment.