An industry is said to be a natural monopoly when:
A. legal barriers limit entry into the market.
B. diseconomies of scale are present in the market.
C. the market demand for the product supplied by a firm is inelastic.
D. long-run average cost continues to decline as the quantity of output increases.
Answer: D
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Refer to Figure 10.1. If Daisy does not contribute to the lighting, Luke should
A) contribute if Bo contributes. B) not contribute only if Bo does not contribute. C) not contribute regardless of what Bo decides to do. D) contribute if Bo does not contribute.
"As long as supply-side effects are ignored, the balanced budget multiplier is equal to zero." Is the previous statement correct or incorrect? Define the balanced budget multiplier and then explain your answer
What will be an ideal response?
An increase in currency held outside the banks is ________
A) a currency drain B) income C) a currency surplus D) wealth
Other things the same, a decrease in the price level makes the dollars people hold worth
a. more, so they can buy more. b. more, so they can buy less. c. less, so they can buy more. d. less, so they can buy less.