The advantages that arise from economies of scale make entry difficult for new firms. As a result, monopolies and oligopolies are often associated with __________ and ___________
a. b and e
b. low costs; high prices
c. low costs; low prices
d. antitrust; laissez-faire
e. competition; high prices
B
You might also like to view...
When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
An expansionary monetary policy ________.
A. is designed to reduce aggregate demand B. shifts the aggregate supply curve to the right C. can reduce the length of a recession D. is used when the inflation rate is high
Which of the following illustrates the tragedy of the commons?
a. Overharvesting a species of fish b. Banning the use of oil and gas c. Using coal for manufacturing d. Hunting out of season
If a firm suffers an economic loss, its:
A. price is less than its marginal cost. B. price is less than its marginal revenue. C. price is less than its average total cost. D. None of these