Refer to Figure 15-4. What is likely to happen to this monopoly in the long run?
A) It will be regulated by the government because of its excess profits.
B) New firms will enter the market to eliminate its profits.
C) It will expand its output to take advantage of economies of scale so as to further increase its profit.
D) As long as there are entry barriers, this firm will continue to enjoy economic profits.
D
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How is the cost of risk calculated when making a decision with an uncertain outcome?
What will be an ideal response?
Which of the following would be inconsistent with the More-Is-Better Principle?
A. Indifference curves with negative slopes B. Indifference curves that cross C. Indifference curves that are L-shaped D. Indifference curves that are parallel to one another
The price elasticity of demand for eggs is -0.27. Thus, -0.27 is the:
A. size of the shift in the demand for eggs when the price of eggs changes by one percent. B. percentage change in the quantity demanded of eggs when the price of eggs increases by one percent. C. percentage change in the price of eggs when the quantity demanded of eggs increases by one percent. D. size of the percentage change in the quantity supplied of eggs when the demand for eggs changes due to a price change.
Recall the Application about the possible link between interest rates and commodity prices worldwide to answer the following question(s).According to this Application, which is a theoretical explanation for why commodity prices rise with expansionary monetary policy?
A. Lower interest rates lower the cost of holding commodities in inventories, resulting in an increase in the commodity demand. B. Lower interest rates raise the cost of holding commodities in inventories, resulting in an increase in the commodity demand. C. Higher interest rates lower the cost of holding commodities in inventories, resulting in an increase in the commodity demand. D. Lower interest rates lower the cost of holding commodities in inventories, resulting in a decrease in the commodity demand.