Profits of a monopoly are driven to zero
a. In the long-run as all assets are mobile in the long-run
b. Immediately in the short-run as assets move from low-valued uses to high-valued uses instantly
c. In the long run because the demand curve becomes more inelastic
d. In the short run because the demand curve becomes more elastic
a
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A single firm in a competitive labor market has a labor supply curve that is
A) upward sloping. B) perfectly inelastic. C) perfectly elastic. D) downward sloping.
Which of the following signals the start of a new expansion?
a. A boom period b. A peak c. An inflation d. A contraction e. A trough
A negative externality occurs when: a. the social cost curve lies above the private cost curve
b. the social cost curve is below the private cost curve. c. a third party benefits from a market transaction by others. d. there is an increase in the private cost borne by sellers.
The law of diminishing returns results in:
A. an eventually falling marginal cost curve. B. a total product curve that eventually increases at a decreasing rate. C. an eventually rising marginal product curve. D. a total product curve that rises indefinitely.