What type of business has been created when one firm is able to supply the total quantity demanded in a market at lower costs than two or more firms could produce?
a. Natural monopoly
b. Artificial monopoly
c. Anti-trust monopoly
d. Regulatory monopoly
a. Natural monopoly
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Mike can wash a car in 5 minutes and wax a car in 15 minutes. Tony can wash a car in 10 minutes and wax a car in 20 minutes. Which of the following is true?
a. Mike can wash a car faster and has comparative advantage in washing cars. b. Mike can wax a car faster and has comparative advantage in waxing cars. c. Tony can wash a car faster and has comparative advantage in washing cars. d. Tony can wax a car faster and has comparative advantage in waxing cars.
Which of the following would NOT cause the costs in a monopolistically competitive industry to be higher than those in a perfectly competitive industry?
A. A large number of competitors B. Advertising expenditures C. Marketing costs necessary to differentiate a product D. The ability to control the price of the product so costs can be allowed to rise
A game in which players collectively lose is known as a
A) zero-sum game. B) positive-sum game. C) negative-sum game. D) cooperative game.
If a rapid disinflation has a lower sacrifice ratio than a slow disinflation, then reducing inflation is best accomplished by
A. a cold-turkey approach. B. reducing interest rates. C. increasing money growth. D. gradualism.