A natural monopoly is likely to arise when:
a. the government restricts entry through licensing
b. patents provide protection of intellectual property.
c. economies of scale exist over the relevant range of demand.
d. a firm controls a crucial input to production.
c
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Keynesians identify three principal motives for demanding money. They are the:
a. transactions demand, precautionary demand, and liquidity motive. b. transactions demand, precautionary demand, and convertibility motive. c. transactions demand, speculative demand, and volatility motive. d. transactions demand, speculative demand, and liquidity motive. e. transactions demand, speculative demand, and precautionary demand.
An imposition of tax by the government for funding welfare programs raises the cost of labor to firms as:
a. the demand for labor increases. b. the demand for labor decreases. c. the supply of labor decreases. d. the supply of labor increases. e. the opportunity cost of leisure increases.