An economic problem with using subsidies or price ceilings to move a monopoly toward the competitive equilibrium is that
a. it may increase monopoly profits.
b. it may decrease monopoly profits.
c. policy makers may not be able to determine what the competitive equilibrium is.
d. policy makers always need to be lobbied before taking any actions.
c. policy makers may not be able to determine what the competitive equilibrium is.
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So long as production in the oligopoly still occurs, recurring fixed costs have no impact on output under Cournot competition but do have an impact under Bertrand competition.
Answer the following statement true (T) or false (F)
A relationship between two events where one event occurring brings about the other is described best as:
A. a pattern. B. a trend. C. causation. D. correlation.
Answer the following statement(s) true (T) or false (F)
1. Trans-boundary pollution linked to electricity generation can be modeled as an international externality whereby the MSB is lower than the MEB of electricity. 2. The Montreal Protocol and its amendments address the phase out of those chemicals primarily responsible for climate change. 3. Chlorofluorocarbons (CFCs) are a group of chemicals believed to contribute to depletion of the ozone layer. 4. The United States ratified the Kyoto Protocol in 2001 during the Bush administration. 5. The flexible mechanisms relevant to the Kyoto Protocol include a system of tradable allowances for greenhouse gases.
Which of the following is a characteristic of a monopolistically competitive market?I.Firms sell differentiated products.II.Each firm is earning a zero economic profit in the long run.III.Potential entrants face artificial barriers to entry.
A. I only B. I and II only C. II and III only D. I, II, and III