What are the assumptions of a pure monopoly?
What will be an ideal response?
One producer, no close substitutes, barriers to entry.
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Which of the following correctly describes the relationship between savings, the government budget balance, and the current account?
A) Private savings plus the government budget balance must equal private investment plus the current account. B) Private savings plus the current account must equal private investment plus the government budget surplus or deficit. C) Private savings plus private investment must equal the current account plus the government budget balance. D) Private investment must equal private savings plus the current account minus the government budget balance.
Which of the following best describes marginal cost?
a. The change in total cost when one additional unit of output is produced. b. Total cost divided by the quantity of output produced. c. Total variable cost divided by the quantity of output produced. d. Total fixed cost divided by the quantity of output produced. e. Costs that do not vary as output varies, and that must be paid even if output is zero.