A monopolist can earn economic profits in the long run because
A) a monopoly is by definition large, and this gives it the ability to make large profits.
B) a monopoly makes the good or service better than anyone else.
C) barriers to entry prevent new firms from entering the industry.
D) monopolies can legally force people to buy their products and to pay more for them than they are worth.
Answer: C
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b. A subsidy to the industry from the government. c. A decrease in advertising expenditures by the industry. d. A decrease in the price of a complement good.
According to the text, on a kibbutz in Israel
a. farmers produce oranges no matter what the price b. members are not profit maximizers c. there is no link between an individual's effort and reward d. universal equality is seen as unrealistic e. high-tech manufacturing is not feasible
A corporation's income is taxed
a. immediately after it is deposited in the bank. b. only before it is distributed to its owners. c. only after it is distributed to owners. d. both before and after it is distributed to owners.
You decide to go to LEGOLAND after you visit Disneyworld in Orlando. The cost of going to LEGOLAND after you visit Disneyworld is the ________ cost of getting from Disneyworld to LEGOLAND.
A. efficiency B. opportunity C. profit maximizing D. marginal time and money