A firm that has relatively high fixed-cost expenditures is likely to be a natural monopoly

If the United States purchases oil from Kuwait, what is the effect in the exchange market? a. It will increase the supply of U.S. dollars

b. It will decrease the supply of U.S. dollars. c. It will increase the demand for U.S. dollars. d. It will decrease the demand for U.S. dollars.

You have been asked by your economics professor to graph the market for lumber and then to analyze the change that would occur in equilibrium price as a result of recent forest fires in the west. Your first step would be to

a. decide which direction to shift the curve. b. decide whether the fires affected demand or supply. c. graph the shift to see the effect on equilibrium. d. None of the above is correct.