Answer the following questions true (T) or false (F)
1. For a natural monopoly, the marginal cost of producing an additional unit of its product is relatively small.
2. The National Football League has long-term leases with the stadiums in major cities. Control of these stadiums is an entry barrier to a potential new football league.
3. Most pharmaceutical firms selling prescription drugs continue to earn economic profits long after the patents on the prescription drugs expire because they have established a strong foothold in the market.
1. TRUE
2. TRUE
3. FALSE
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Governments exist to
A) maintain property rights. B) provide non-market mechanisms for allocating scarce resources. C) implement arrangements that redistribute wealth and income. D) all of the above.
Refer to Table 15-4. What is the amount of Shakti's profit?
A) $68 B) $72 C) $124 D) $192