Suppose that a monopoly is earning economic profits in the short run. As a result,
a. no new firms will enter the industry because of barriers to entry
b. the monopolist will increase its price and lower its output
c. the market supply curve will shift to the right
d. profits will fall as new firms enter the market
e. the market demand curve will shift to the left
A
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In order to increase economic growth, a government can
A) discourage research and development. B) decrease funding on education. C) discourage specialization and trade. D) establish property rights and a legal system. E) tax saving in order to encourage more spending.
In the private placement market the term "due diligence" means
A) an investor finding an honest agent from whom to buy a bond. B) a borrower finding an honest agent to sell its bonds. C) conducting a credit analysis of the borrower. D) an agent tailoring terms of the placement to meet investor needs.