Profits of a monopoly are driven to zero
a. Immediately in the short-run as assets freely move from low-valued uses to high-valued uses instantly
b. In the long run because the demand curve becomes more inelastic
c. In the long run because the assets eventually move from low to high valued use
d. In the short run because the demand curve becomes more elastic
c
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The crowding in of private investment is more likely to occur, when _____
a. there is a depreciation of domestic currency b. interest rates increase significantly c. a contractionary gap exists in an economy d. the deficits lower expectations about economic growth e. an expansionary gap exists in an economy
According to the classical dichotomy, which of the following is influenced by monetary factors?
a. real GDP b. unemployment c. nominal interest rates d. All of the above are correct.