If only one firm operates in a market, and a potential entrant is blockaded from entering the market, then the incumbent firm must
A) have acted to prevent entry.
B) be pricing where price equals marginal cost.
C) be a natural monopoly.
D) be the Stackelberg leader.
C
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In 2006 the Texas Two Step lottery had hit an all-time high jackpot of $2.9 million. If the odds of winning the jackpot are 1.8 million to one and the cost of one lottery ticket is $1.00 is this a fair game? Explain
What will be an ideal response?
The economy was in long-run equilibrium when aggregate demand increased. At this point in time, the expected inflation has started to adjust to the new higher actual inflation rate. According to the (Friedman) natural rate theory, this means the unemployment rate in the economy must currently be
A) decreasing. B) increasing. C) higher than it was in long-run equilibrium. D) equal to what it was in long-run equilibrium. E) There is not enough information to answer the question.