Possible benefits of a monopoly include which of the following (choose all that apply)?
a. a savings of fixed costs because only one firm supplies quantity demanded
b. greater opportunities for research due to long-run positive economic profits.
c. government regulation is more effective because the firm is "too big to fail.".
d. goods and services are provided at a lower price than under perfect competition because of a monopoly's decreasing average cost curve.
a, b
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Which country was among the lowest ranking by the World Bank for effective protection of property rights and rule-based governance?
a. North Korea b. Cuba c. Afghanistan d. Iraq
Suppose Dave drives more recklessly when he has car insurance than when he does not have car insurance. This is an example of the moral hazard problem associated with insurance
a. True b. False Indicate whether the statement is true or false
Which of the following is not correct?
a. Economics is a study of the choices that people make and the resulting interactions they have with one another. b. In areas it has already studied, economists have found perfect and unchanging answers. c. Economists are trying to expand their understanding of human behavior and society. d. The economics of asymmetric information, political economy, and behavioral economics are all topics at the frontier of microeconomics.
Owners of buildings can expect to collect ____ economic rent in the long run.
A. much B. marginal C. a competitive D. little or no