From what you know about the different kind of monopolies, which answer best describes the natural ones?
a. They only exist because the government has established patent laws.
b. They can produce services, but not goods.
c. The market supports only two or three firms.
d. Potential competitors are purchased before they can enter.
e. There is a declining ATC throughout the relevant range of production.
E
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Is fiscal policy more or less effective in manipulating aggregate demand in an open economy?
What will be an ideal response?
Suppose that Canadian farmers can grow wheat more cheaply than can U.S. farmers. In the interest of efficiency, what is the desirable outcome?
A) Allow the Canadian farmers to sell their wheat for a lower price. B) Pass a law in Canada mandating a minimum price for wheat equal to what is charged by U.S. farmers. C) Pass a law in the United States mandating a maximum price for wheat equal to what is charged by Canadian farmers. D) Have U.S. citizens boycott Canadian wheat.
According to the Coase theorem, the private market will need government intervention in order to reach an efficient outcome
a. True b. False Indicate whether the statement is true or false
What percentage of American families pay more payroll tax than they pay in income tax?
A. 40. B. 60. C. 75. D. 80.