Which of the following examples shows a firm that probably has a monopoly?
a. Birchfield, Inc. exits its market after many other firms enter it.
b. After five years, Samson, Inc’s marginal revenue equals its marginal cost.
c. BRV, Inc.’s economic profits gradually decline over six years until they reach zero.
d. Mongul, Inc. makes large profits for ten years.
d. Mongul, Inc. makes large profits for ten years.
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If the income elasticity of demand for a good is zero, then
a. the goods inferior. b. the good is normal. c. the good violates the Law of Demand. d. consumption of the good does not change as income changes.
Which one of the following is part of the M2 definition of the money supply, but not part of M1?
a. Checkable deposits. b. Currency held in banks. c. Currency in circulation. d. Small time deposits of less than $100,000.
If the economy is operating along its long-run aggregate supply curve and aggregate demand increases, which of the following situations will occur?
a. Potential output will increase but the price level will remain constant b. Both potential output and the price level will increase c. Potential output will remain constant and the price level will increase d. Both potential output and the price level will decrease
What is the relative importance of demand and supply factors in explaining rising health care costs?
What will be an ideal response?