Which statement is false?
A. Once a monopoly is set up, it is possible to dislodge it.
B. Some monopolists have control over an essential resource.
C. Several competing firms can provide cheaper service than a natural monopoly.
D. As a firm grows larger, at first it realizes economies of scale, but eventually diseconomies of scale set in.
C. Several competing firms can provide cheaper service than a natural monopoly.
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The excess burden of a tax is also a deadweight loss
Indicate whether the statement is true or false
Which of the following is TRUE about firms organized along functional lines?
a. Workers find it difficult to develop functional expertise b. Workers find it difficult to share information within their division c. They foster the exploitation of economies of scale d. All of the above
The crowding-in effect results from
a. a low MPS. b. induced investment. c. induced consumption. d. rising interest rates.
Which of the following would cause the money supply in the United States to expand?
a. a decrease in reserve requirements b. an increase in the discount rate c. the sale of bonds by a Federal Reserve bank d. an increase in the world supply of gold