Some economists argue the best response to a monopoly is to:
A. never publicly own enterprises because it raises taxes.
B. do nothing at all.
C. do whatever the public demands.
D. None of the statements is true.
Answer: B
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A market supply curve reflects the
A) marginal private costs of producing a good or service. B) marginal social costs of producing a good or service. C) external costs of producing a good or service. D) external benefits of producing a good or service.
Refer to Scenario 7.3. When Q = 200, what is the marginal cost?
A) 0 B) 5 C) 10 D) 15 E) 25
Which of the following is an outcome of advertising for a monopolistically competitive firm? a. Long-run average costs shift downward
b. The firm's demand curve becomes flatter and shifts inward. c. The firm's demand curve keeps the same slope and shifts inward. d. Long-run average costs shift upward.
The reason that the Fed does not actively use discount rate policy to control the money supply is because the Fed
a. acts when a majority of member banks agree on policy and the banks rarely agree. b. earns interest on discounting and cannot afford to lose the revenue. c. does not know how banks will respond to discount rate changes. d. has been directed by Congress to set the discount rate at a permanent level.