With a natural monopoly, the minimum price a single firm must charge to make a profit:
A. is half the price two or more firms would have to charge.
B. is equal to the price two or more firms would have to charge.
C. is lower than the price two or more firms would have to charge.
D. is always higher than the price two or more firms would have to charge.
Answer: C
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The short-run aggregate supply curve shifts leftward when the
A) price level increases. B) general level of technology advances. C) money wage rate increases. D) availability of on-the-job training expands to all workers.
Limits on the value of the assets that commercial banks can acquire relative to their capital is known as:
A) equity requirements B) capital requirements C) required reserves D) asset requirements
The non-exclusion principle means
A) no one can be excluded from the benefits of a public good, even if the person does not pay for it. B) no one can be excluded from the benefits of a private good, even if only one person pays for it. C) no one who pays for a public good can be excluded from receiving the benefits of a public good. D) people who do not pay for a public good can be excluded from receiving its benefits.
Suppose Lorna will buy more sweaters if the price of sweaters rises. She is violating the
a. law of supply b. law of increasing costs c. law of large numbers d. law of diminishing costs e. law of demand