If government officials break up a natural monopoly into four smaller firms, then
a. each firm will be unable to maximize profits due to increased competition.
b. competition will force firms to produce surplus output, which drives up price.
c. the average cost of production will increase.
d. consumers will benefit from lower average total costs.
c
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If the price of a video download is below its equilibrium price, the quantity supplied is ________ than the quantity demanded
If the price of a video download is above its equilibrium price, the quantity supplied is ________ than the quantity demanded. A) less; greater B) greater; less C) less; less D) greater; greater
In the factor payments approach, owners of land receive
a. wages b. user fees c. rent d. interest e. profit
Which of the following statements is false?
A. Recognizing tradeoffs is an essential part of good decision making. B. Most government policies provide people with incentives to take certain actions and avoid others. C. People will pursue an action as long as it has benefits associated to it. D. Every choice involves a tradeoff.
The age-earning cycle predicts that a typical person will
A) be earning $50,000 in the year 2010. B) be earning the lowest income right before retirement. C) be earning the highest income right before retirement. D) be earning the highest income at about the age 45-50.