If a natural monopoly was forced to break up into several small competitive firms, the
A. Price charged by the competitive firms should increase because they no longer have economies of scale.
B. Total production for the industry should increase because of the efficiency generated by increased competition.
C. Price charged by the competitive firms should decrease as the firms become more efficient.
D. Cost of production should fall as the smaller firms become more efficient.
Answer: A
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Suppose your tastes can be represented by the utility function 
. Your demand function for 
is
A.
.B.
.C.
D.
The larger the four-firm concentration ratio, the ________ competition within an industry; the larger the Herfindahl-Hirschman Index, the ________ competition within an industry
A) more; more B) more; less C) less; more D) less; less E) The premise of the question is wrong because the four-firm concentration ratio applies only to markets with four firms in it and these markets are, by definition, not competitive.
The difference between GDP and net taxes is
A) actual investment spending. B) personal income. C) unplanned investment spending. D) disposable income.
According to the graph, if the perfectly competitive outcome and monopoly outcome are compared, we can see that the:
This graph shows the cost and revenue curves faced by a monopoly.
A. monopoly creates deadweight loss.
B. perfectly competitive firm would lose money in this industry.
C. perfectly competitive firm would produce Q1 units.
D. monopolist would charge P3 and the perfectly competitive firm would charge P1.