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A natural monopoly occurs when
A. production requires the use of free natural resources, such as water or air.
B. the firm is characterized by a rising marginal cost curve.
C. there are economies of scale over the relevant range of output.
D. the product is sold in its natural state, such as water or diamonds.
Swim coach Rob teaches athletes how to swim freestyle while keeping their hips raised. Let q represent the number of swimmers that learn the technique, and let h represent the number of hours of individual training Rob provides in which the swimmers ..
q1. explain why does production ultimately experience diminishing marginal returns to labor in the short run?q2. what
a. Assume that the interest rate is 5%. What is the price of the bond? (Please show me work) b. Now suppose that the interest rate falls to 2%. What is the price of the bond? (Please show me work)
Suppose that two goods are perfect complements. If the price of one good changes, what part of the change in demand is due to the (Slutsky) substitution effect and what part is due to the (Slutsky) income effect? Explain.
Indicate whether each of the following represents a credit or debit on the U.S. current account.
Which of the following is example of moral hazard?
What do monopolistic competition, pure monopoly, and perfect competition have in common?
Use the AS/AD model to describe the effect of each of the following events on the economy of Snezhanka (a fictitious nation). Beginning with the economy in equilibrium carefully show the shift involved and the new equilibrium. Let’s consider the effe..
Currently, the economy's aggregate output demanded is $100 billion. The government thinks that is is too small, so it wants to increase it by implementing expansionary fiscal policies. It decides to reduce taxes by $10 billion with this goal in mind...
Over the last decade, several firms have entered this industry and, as a consequence, Forey is earning a return on investment that roughly equals the interest rate. Furthermore, the four-firm concentration ratio and the Herfindahl-Hirschman index ..
In the short run, information about perfectly competitive firm's fixed costs are needed to determine both, the profit maximizing level of output and the amount of profit earned when producing that level of output.
If the economy is operating at a point less than full employment (as it is now), what would we want to see happen to GDP? For right now, let's just look at the C (consumption) component of our GDP equation. What would we want to see happen to consume..
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