Buying a monopoly from the existing owner does not ensure an economic profit because
A) the market for monopolies is a monopoly.
B) competition among buyers drives up the cost of buying the firm.
C) profits equal zero in the long run anyway.
D) of the deadweight loss triangle.
B
Economics
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The two main characteristics of a public good are
A. nonrivalry and large negative externalities. B. nonrivalry and nonexcludability. C. nonexcludability and production at rising marginal cost. D. production at constant marginal cost and rising demand.
Economics
In the above figure, moving from producing 50 guitars and 50 ukuleles to producing 25 guitars and 75 ukuleles, the opportunity cost of one ukulele is
A) 25 guitars.
B) 75 ukuleles.
C) 25 ukuleles.
D) 1 guitar.
Economics