Are some monopolies created by government legislation that gives a firm the unique right to produce a good or service?
What will be an ideal response?
Yes, some monopolies are created by government legislation, such as patent or copyright laws and the granting of public franchises. Monopolies that are created because of legal barriers to entry are called legal monopolies.
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Competition is essentially the search for
A) accounting profit. B) economic profit. C) zero tax liability. D) the market with the most competitors.
Which of the following is not a reason used to explain the slowdown in productivity in the United States?
A. The lack of savings in the 1980s and early 1990s B. High energy prices in the 1970s C. Competition from China and Japan D. Inadequate workforce skills
Because of automatic stabilizers, when real GDP decreases...
What will be an ideal response?
Lisa consumes only pizzas (P) and burritos (B). Her utility function is U = P0.5 B0.5. The price of per pizza is $10 and the price per burrito is $5. In equilibrium, Lisa consumes 4 pizzas. Using Lisa's utility function, calculate how many burritos she consumes
What will be an ideal response?