Economies of scale throughout the range of market demand give natural monopolies
a. downward-sloping long-run average cost curves
b. upward-sloping long-run average total cost curves
c. upward-sloping long-run average cost curves
d. upward-sloping short-run average total cost curves
e. horizontal long-run average cost curves
A
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In the short run, a restrictive fiscal policy will cause aggregate demand, output, and the price level to change in which of the following ways?
A) Decrease/Decrease/Decrease B) Decrease/Increase/Increase C) Increase/Decrease/Decrease D) Increase/Decrease/Increase E) No change/No change/No change
The fact that the firms in an oligopoly are mutually interdependent means that each firm:
A) must consider the reactions of its competitors when it sets the price for its output. B) produces a product that is similar, but not identical, to the products of its competitors. C) produces a product that is identical to the products of its competitors. D) faces a perfectly elastic demand curve for its product.