Figure 8.12 shows a demand and costs of an unregulated monopoly. This firm must:
A. be a natural monopoly.
B. have an exclusive government license.
C. be a monopoly because it has a patent.
D. be operating in a contestable market.
Answer: A
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What will be the effect of a tax cut on consumption if consumption offers diminishing returns?
What will be an ideal response?
In October of 2014, the interest rate on money market accounts was about 0.2 percent. In 2007, the interest rate on money market accounts was about 4.0 percent. What has been the impact on money demand from this fall in the interest rate?
A) the money demand curve shifted to the right B) the money demand curve shifted to the left C) the quantity of money demanded increased D) the quantity of money demanded decreased
Of the collection of supply and demand diagrams in Figure 2.2, which one shows the result of an increase in technology in the market for anything?
A. Figure 1 B. Figure 2 C. Figure 3 D. Figure 4
If the MPS rises, then the MPC will:
What will be an ideal response?