What is a monopolist, and what is required for a monopolist to earn profits in the long run?
What will be an ideal response?
A monopolist is a single supplier of a good or service for which there is no close substitute. For the firm to receive economic profits in the long run, there must be some type of barrier to entry that keeps entrants in search of profits out of the industry.
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As the price of computers falls, the quantity of computers demanded increases. This is an application of:
A. the production possibilities curve B. the law of demand C. the law of supply D. needs versus wants
Use the following table to answer the question below. Giovanni's Production Possibilities ScheduleJorge's Production Possibilities SchedulePounds of Green BeansPounds of CornPounds of Green BeansPounds of Corn0160032040120202408080401601204060801600800If Giovanni and Jorge both specialize in the production of their respective low-cost goods, then the total production of corn equals ________ pounds and the total production of green beans equals ________ pounds.
A. 320, 320 B. 160, 320 C. 320, 160 D. 160, 160
In the above figure, Graph D with units of capital on the vertical axis and units of labor on the horizontal axis implies that
A) the marginal product of labor is increasing as more labor is employed. B) the marginal product of labor is decreasing as more labor is employed. C) the capital and labor are perfect substitutes. D) capital and labor have to be employed in fixed proportions.
Perhaps the largest problem with corrective taxes is that ______.
a. they can be collected from each firm only once b. they affect everyone equally, whether they add to the problem or not c. the externalities they apply to are hard to measure d. there is no way to enforce and collect them