Which statement is true?
A. Natural monopolies may occur in theory, but there are virtually no actual examples in today's economy.
B. All forms of a monopoly are illegal in the United States.
C. Many public utilities are natural monopolies.
D. None of these statements are true.
C. Many public utilities are natural monopolies.
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Explain why input demand curves slope downward using the concepts of the factor substitution effect and the output effect
What will be an ideal response?
Suppose nominal GDP was $360 billion in 1990 and $450 billion in 2000. The appropriate price index (1985 = 100) was 120 in 1990 and 125 in 2000. Between 1990 and 2000 real GDP:
a) increased by $60 billion. b) decreased by $32 billion. c) increased by $100 billion. d) increased by $117 billion.
Compare how exports and imports affect consumers and producers in a domestic economy.
What will be an ideal response?
?A short-run aggregate supply curve (SRAS) assumes:
A. ?the CPI is fixed. B. ?each point on the SRAS is potential real GDP. C. fixed or sticky nominal wages. D. ?nominal wages vary directly with price changes.