When a city licenses only 3 taxi firms to serve the market, the city has created a
A) cartel.
B) legal monopoly.
C) monopolistically competitive market.
D) legal oligopoly.
E) natural oligopoly.
D
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A supply curve slopes upward because quantity supplied is higher when price is higher.
Answer the following statement true (T) or false (F)
The omission of household production causes actual economic production to be underestimated
Indicate whether the statement is true or false
According to the graph shown, if the government decides to increase its spending, it is most likely at point:
A. C
B. B
C. D
D. It's impossible to tell without more information.
The demand for a resource is generally more
a. elastic in the short run because it takes time to alter the ratio of resources used in many production processes. b. inelastic in the short run because it takes time to alter the ratio of resources used in many production processes. c. elastic in the short run because an increase in the price of the resource may not be expected to last. d. inelastic in the short run because once resource suppliers find out they can charge a higher price, they will do so in the long run.