Regulation of the quantity produced by a monopolist typically has no impact on the quality of the product.
Answer the following statement true (T) or false (F)
False
Regulation of the quantity produced may induce a decline in quality. A firm may try to increase profits by cutting corners, and since a monopolist has no direct competition, consumers pretty much have to accept whatever quality the monopolist offers.
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All of the following statements are examples of normative economic analysis except
A) as the demand for emergency room nurses increases, more students are choosing to enroll in nursing school. B) to provide better care, doctors should be required to limit the number of patients they see each day. C) people should be able to choose whether they want to purchase health insurance. D) prescription drugs are too expensive and the government needs to regulate prices in the pharmaceutical industry.
"Lady Gaga concert sells out. 60,000 tickets sold." What can an economist conclude from the above headline?
A) There is a surplus of tickets. B) The market clears. C) The quantity supplied is 60,000. D) The quantity demanded is at least 60,000. E) Both C and D above.
What is a firm's minimum efficient scale?
What will be an ideal response?
A monopsony is a market in which
a. one firm is the sole producer of a good or service. b. one firm is the sole buyer of a good or service. c. firms encourage competition by starting "price wars" among competitors. d. firms collude in setting prices and levels of output.