Which of the following is false?
a. A true or pure monopoly exists where there is only one seller of a product for which no close substitute is available.
b. The situation in which one large firm can provide the output of the market at a lower cost than two or more smaller firms is called a natural monopoly.
c. In monopoly, the market demand curve may be regarded as the demand curve for the firm because it is the market for that particular product.
d. A monopoly firm is a price maker, and it will pick a price that is the highest point on its demand curve.
d
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The Coase solution to the problem of externalities
a. applies in every situation where externalities are present b. only applies to activities that generate positive externalities c. only works under perfect competition d. only works when bargaining costs are low e. can lead to an increase in the common pool problem
When resource prices are negotiable, the long-run aggregate supply curve is represented by: a. an upward-sloping line b. a downward-sloping line c. a vertical line at potential output
d. a horizontal line at the actual price level. e. a horizontal line at the expected price level.
In economics, the concept of opportunity cost is:
a. negated by ensuring that the government has a role in a capitalist society. b. defined to be the highest-valued alternative that must be forgone when a choice is made. c. best illustrated by knowing why consumers choose one good over another. d. quantifiable only if you know the real dollar price of the goods and services you are giving up to consume something. e. the methodology that government economists use to determine the total amount of the national debt.
The opportunity cost of holding money is:
A. heavy and awkward. B. the probability of theft or loss. C. the ease of conducting everyday business. D. the return that could have been earned from holding wealth in other assets.