There are several types of barriers to entry that can create a monopoly. Which of the following barriers is the result of government action?
A) public franchise B) control of a key resource
C) economies of scale D) network externalities
A
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Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the short run would be:
A. P1 and Y2. B. P2 and Y3. C. P3 and Y1. D. P2 and Y2.
In the short-run:
a. All inputs are variable b. Some inputs are fixed and some inputs are variable c. There are no fixed inputs d. The firm is not restricted in how much it can produce
Discuss why the discount rate may be considered a penalty rate of interest charged to banks.
What will be an ideal response?
Which of the following is the government most likely to discourage because of the existence of externalities?
A. Thermal pollution from a power plant that improves fishing downstream. B. All goods and services produced by monopolies. C. Foods that taste good. D. Cars that create an excessive amount of exhaust fumes.