Monopolies can make an economic profit in the long run because there
A) are close substitutes for the product.
B) is free entry and exit.
C) is inelastic demand from consumers.
D) is a barrier to entry.
D
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If proved reserves of a mineral amount to twelve years of use at the current rate of consumption,
a. it is likely, though not certain, that we will run out of that mineral in about twelve years. b. we are likely to run out of the mineral in less than twelve years if our rate of use has been increasing. c. if the good becomes more scarce relative to supply in the future, its price will rise and thereby encourage both conservation and exploration. d. if proved reserves diminish, lower prices will extend the day of exhaustion well into the future.
Assume that the expectation of a recession next year causes business investments and household consumption to fall, as well as the financing to support it. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to the nominal exchange rate and the monetary base in the context of the Three-Sector-Model? a. The nominal exchange rate remains the
same and monetary base rises. b. The nominal exchange rate falls and monetary base falls. c. The nominal exchange rate remains the same and monetary base falls. d. The nominal exchange rate and monetary base remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.