The reason economists consider monopoly to be socially undesirable is that monopolists:
A. produce less than the socially optimal level of output.
B. earn too much economic profit.
C. can charge any price they want.
D. exploit the inelastic nature of demand.
Answer: A
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The Augmented Dickey Fuller (ADF) t-statistic
A) has a normal distribution in large samples. B) has the identical distribution whether or not a trend is included or not. C) is a two-sided test. D) is an extension of the Dickey-Fuller test when the underlying model is AR(p) rather than AR(1).
A natural monopoly is created by
a. a patent b. nature c. substantial economies of scale d. government regulation e. control of scarce inputs
Command-and-control regulations create incentives for firms to take the social costs of pollution into account and allow firms some flexibility in reacting to these incentives
a. True b. False Indicate whether the statement is true or false
By the mid-1970s, the average workweek was about _____% lower than it was in 1900.
Fill in the blank(s) with the appropriate word(s).