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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.
Calculate and graph the ration of: (i) real residential investment to real GDP; (ii) real non-residential investment to real GDP; and (iii) real inventory investment to real GDP. Which of the components of investment shows the most (least) variabilit..
Consider a market for pawn brokers. The television show Pawn Stars creates a lot of positive buzz for the profession. What will happen to the market? Demand increases, demand decreases, supply decreases, no change in either, or supply increases?
Think our company should take advantage of economies of scale by increasing our output, thereby spreading out our overhead costs.
Assume that being sustitutes for one another, corn and soybean require the same raw material such as land, will farmers use their soybean farms to produce more or less corn and in econmic.
The economy slips into a recession and the government is thinking of providing a stimulus package to boost the aggregate demand. Which of the following is most likely to increase the aggregate demand, all else the same? Increase taxes Reduce transfer..
Suppose that a Hydrocarbon Cracking Operation, Inc. is a monopoly and has the demand, marginal revenue, and marginal cost functions as shown in the graph below. What price and output combination will the monopoly select?
To what degree does real GDP measure to health of an economy? How is it possible to make valid international comparisons of real GDP? Support your answer with examples.
Esmerelda worked parttime for her mother’s business without pay. Tabitha was absent from work because she had strep throat. Who is counted as “employed” by the Bureau of Labor Statistics? Cyclical unemployment results from? Which of the following pe..
Define the five types of possible “net” or “overall” effects of the country’s growth on the importance of the trade sector and indicate which types would, other things equal, lead to a deterioration of the growing country’s terms of trade (assuming t..
You want to set up a college saving plan for your sister. She is currently 10 years and will go to college at age 18. You assume that when she starts college, she will need at least $100,000 in the bank. How much do you need to save each year in orde..
What is the equilibrium price. What is the equilibrium quantity. If the price was $7, what would be the quantity demanded
The organization where you work is expanding into the global market by opening an office in China. What are some potential ethical and social issues that may arise as the company expands into this new area? Can these issues be avoided or mitigated?..
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