Scott used $4,000,000 from his savings account that paid an annual interest of 5% to purchase a hardware store. After one year, Scott sold the business for $4,100,000 . His accounting profits is:

When GDP decreases, consumption spending increases

a. True b. False Indicate whether the statement is true or false

Which of the following reasons explain why a natural monopoly might exist?

A. The government has banned other firms from entering the market. B. The good or service is not proprietary. C. Extremely high start-up costs. D. A cartel owns the natural resource.