The government sometimes grants a firm the exclusive right to market a good or process for a fixed period of time. This is called
a. laissez-faire
b. a patent
c. contestable markets
d. economies of scale
e. monopolistic competition
B
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If the demand for money was totally independent of the interest rate, the LM curve would ________ and monetary policy would ________
A) have a positive slope, quite powerful B) have a positive slope, impotent C) be vertical, quite powerful D) be vertical, impotent
The Sherman Antitrust Act was passed to
A) protect companies from foreign competition. B) protect the monopoly profits of firms. C) control the growth of monopolies in the U.S. D) prevent market price from equaling marginal cost.
Cooling systems Carl is the lead engineer on a smart HVAC cooling system that works with minimal energy and is voice activated. Given the revolutionary nature of the system, it took many failed tries to create a system that actually worked, a cost of
$30,000 . Now each unit sells for $6500 and it costs $5000 in raw materials and labor to produce. What costs should Carl take into consideration when deciding to service the order for an additional unit?
The market basket approach:
A. measures changes in the cost of a fixed shopping basket, assuming that typical consumer buys the same items in the same quantities. B. gives us a single number to measure how much your total costs for all goods and services change over time. C. is equivalent to simply averaging the increase in the price of each grocery item. D. is how economists monitor trends in what people like to buy from year to year.