What three conditions must be present for a natural monopoly to exist?
a. one supplier, no close substitutes, barriers for entry
b. multiple suppliers, many close substitutes, no barriers for entry
c. one supplier, many close substitutes, few barriers for entry
d. few suppliers, no close substitutes, no barriers for entry
a. one supplier, no close substitutes, barriers for entry
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When negative externalities like pollution exist, competition leads to:
a. a socially efficient outcome. b. too few goods being bought and sold. c. a market equilibrium price that is too high. d. more production than would be efficient.
All of the following could be used to support the argument that the natural rate of unemployment has fallen in the last ten years except
A. the proportion of young people in the labor force is shrinking. B. because the adult population in prison has doubled since 1985, many people who would normally be counted as unemployed are behind bars. C. workers are more insecure because of numerous plant closings and corporate downsizing, and as a result are less likely to quit their jobs to look for work elsewhere. D. unemployment insurance has become more generous in the last ten years.