One likely result of monopoly power is
a. a wide variety of substitute products from which consumers can choose
b. an elimination of barriers to industry entry
c. a decline in government regulation
d. a higher price than would exist in a competitive industry
e. an improvement in allocative efficiency
D
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Which of the following are policy tools used by the Federal Reserve? i. the federal personal income tax ii. open market operations iii. changing the required reserve ratio
A) i only B) ii only C) iii only D) ii and iii E) i, ii, and iii
Suppose a bet is placed on the outcome of the flip of a coin – if the coin comes up heads, you get $25 and if it turns up tails, you lose $25 . If you accepted this bet, does it imply that you are risk averse, risk neutral, or risk loving?
What will be an ideal response?
The above figure shows the isoquants for producing steel. Decreasing returns to scale are
A) present when producing more than 10,000 tons. B) present when producing more than 20,000 tons. C) present when producing more than 30,000 tons. D) never present.
The velocity of money increases if:
A. each unit of money is used less frequently. B. each unit of money is used more frequently. C. more purchases are made. D. none of the above answers is correct; the velocity of money is constant.