Patents and copyrights are designed to
a. eliminate above-normal profit in the short run
b. move monopoly prices closer to prices that would occur under perfect competition
c. prevent the capitalization of monopoly profit
d. allow a period of above-normal profit to encourage innovation
e. limit a monopoly's rent-seeking activities
D
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Autarky refers to
A) a situation in which there is no trade. B) the equilibrium a nation reaches after trade begins. C) a situation in which nations trade goods and services. D) the location on a consumption possibilities curve.
If both the demand curve and the supply curve shift to the right, we can unambiguously conclude that the
A) market clearing price will increase. B) market clearing price will decrease. C) equilibrium quantity will increase. D) equilibrium quantity will decrease.
If the marginal utility of a product exceeds its MC, we would want, on efficiency grounds, to
a. increase production. b. decrease production. c. leave production constant. d. One cannot tell without knowing the price.
If price is above the equilibrium price, then there will be:
A. neither excess supply nor excess demand. B. excess demand. C. both excess supply and excess demand. D. excess supply.