Which of the following best explains why economists are generally critical of unregulated monopolists?
a. Monopolists do not try to minimize their costs of production.
b. Monopolists produce where marginal revenue is greater than marginal costs.
c. Monopolists attempt to produce too many products, and as a result, their prices are high, and consumers waste time trying to choose between too many options.
d. Monopolists restrict output, and as a result, they fail to produce units that are valued more than the marginal cost of producing them.
D
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If the Fed increases the inflation rate in the short run before people's expected inflation changes, what occurs? What happens in the long run?
What will be an ideal response?
All but one of the following statements is used to justify protectionism. Which statement is not used to justify protectionism?
A) Free trade reduces employment by driving domestic firms out of business. B) Free trade leads to higher prices for imported goods. C) Trade restrictions are necessary to protect new firms until they can gain experience and become more productive. D) A country should not rely on other countries for goods that are critical to its national defense.