The fundamental source of monopoly power is
a. many buyers and sellers.
b. low fixed costs.
c. rising average total costs.
d. barriers to entry.
d
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Leisure being an inferior good is necessary but not sufficient for labor supply to slope up.
Answer the following statement true (T) or false (F)
What four decisions must firms with market power make?
What will be an ideal response?
If consumers respond to a 10% price reduction by buying twice as much of a particular good, we would conclude that:
A. the price elasticity of demand at the original price was less than one. B. the price elasticity of demand at the original price was greater than one. C. there was excess demand at the original price. D. there was excess supply at the original price.
In the long run, a year-long drought that destroys most of the summer's wheat crops causes permanently:
A. higher prices. B. lower prices. C. lower output. D. None of these is true.