What is a key criterion involved in deciding a natural monopoly?
A. Size of the firm relative to its competitors
B. Size of the firm relative to the total market demand for a product
C. Magnitude of profits generated by the company
D. A firm’s ability to adapt to market changes
Answer: B
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The ________ claims that the way societies have organized themselves and shaped the incentives of individuals and businesses are at the root of the differences in prosperity across the world
A) location hypothesis B) geography hypothesis C) institutions hypothesis D) culture hypothesis
Refer to the scenario above. Jill will derive ________ units of utility if she tries to move the tree while Jack does not try at all
A) 5 B) -5 C) -2 D) 10
Because there is an imbalance of information in a lending situation, we must deal with the problems of adverse selection and moral hazard. Define these terms and explain how financial intermediaries can reduce these problems
What will be an ideal response?
Any time the economy is between a trough and a peak of the business cycle it is in a recovery phase
Indicate whether the statement is true or false