If technology is fixed, monopolization of a competitive industry will lead to
a. lower prices and higher output
b. higher prices and the same level of output
c. lower output and the same level of price
d. higher prices and lower output
e. higher output and higher prices
D
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In a natural monopoly, throughout the range of market demand,
a. marginal cost exceeds average cost and therefore pulls average cost upward b. average cost exceeds marginal cost and therefore pulls marginal cost upward c. marginal cost is below average cost and therefore pulls average cost downward d. average cost is equal to marginal cost e. there are diseconomies of scale
Which of the following conclusions is not supported by the Three-Sector-Model?
a. An increase in a nation's supply of goods and services raises the amount sold per time period and lowers the nation's GDP Price Index. b. An increase in the demand for a nation's currency in the foreign exchange market raises its international value. c. An increase in a nation's real risk-free interest rate increases the willingness and ability of lenders/savers to supply credit to the real loanable funds market, and it decreases the willingness and ability of individuals and companies to borrow/invest. d. An increase in a nation's demand for goods and services within the Classical range usually leads to a strong decrease in the unemployment rate.