For a natural monopoly, marginal cost
A. Equals marginal revenue above the demand curve.
B. Intersects average total cost at zero profit.
C. Is always below average total cost in the relevant range of production.
D. Equals price at a profitable output level.
Answer: C
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Apple has continued to be innovative to ensure that the demand for its products stays or becomes
a. More inelastic b. More elastic c. Unitary elastic d. None of the above
To avoid the free-rider problem, which of the following goods is best provided by the government and paid for with tax dollars?
A. automobiles B. lighthouses C. bread D. windows
The most important thing about higher labor productivity is that it means
A. we can achieve a happier population. B. we can compete well with other nations. C. we can have a higher standard of living. D. we are doing better than anyone else is.
The reason that a run on a single bank can turn into a bank panic that threatens the entire financial system is:
A. the lack of regulation. B. information asymmetries. C. moral hazard. D. the increased reliance on web-based funds transfers.