Which of the following is required for a monopolist to receive positive economic profits in the long run?
a. Minimal entry barriers
b. Exchange of technological know-how with rival firms
c. High barriers that block new entry
d. Allowing rival firms to produce close substitute products
c
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In the absence of a Ricardo-Barro effect, a government budget deficit ________ the demand for loanable funds, ________ the real interest rate, and ________ investment
A) increases; increases; crowds out B) increases; decreases; increases C) decreases; increases; increases D) decreases; increases; crowds out
The figure above illustrates Mary's production possibilities frontier. If Mary wants to move from point b to point c, she must
A) improve technology. B) increase the accumulation of capital. C) give up some of good Y in order to obtain more of good X. D) give up some of good X in order to obtain more of good Y.