Conclusions about the misallocation of resources under conditions of monopoly depend, in part, on the crucial assumption that
A) monopolies are interested in economic profits and competitive firms are not.
B) the monopolization of a perfectly competitive industry does not change the cost structure of the industry.
C) the economies of scale exist only in perfectly competitive industries.
D) the marginal cost curve of a monopolist is different from that of a perfectly competitive firm.
Answer: B
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According to the gravity model, a characteristic that tends to affect the probability of trade existing between any two countries is
A) their cultural affinity. B) the average weight/value of their traded goods. C) their colonial-historical ties. D) the distance between them. E) the number of different product varieties produced by their industries.
A sole proprietorship is typically a relatively small business because
a. its operations must stay within state borders b. it is operated out of the proprietor's home c. there are no employees, only working family members d. there are no bank loans available for expansion e. expansion often requires a partner or conversion to another form of business organization
Which of the following represents a potential solution to the problem of environmental pollution?
a. corrective taxes b. well established property rights c. government regulation d. All of the above are correct.
A useful rule of thumb is that standard errors are expected to shrink at a rate that is the inverse of the:
A. square root of the sample size. B. product of the sample size and the number of parameters in the model. C. square of the sample size. D. sum of the sample size and the number of parameters in the model.