Governments can eliminate market failure due to an imperfectly competitive market by
A) changing the market structure, for example by eliminating monopoly protection.
B) having the government own the monopoly.
C) imposing regulations that reduce prices.
D) All of the above.
D
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Harry's Hookahs incurs $700,000 per year in explicit costs and $500,000 in implicit costs. The company earns $1.4 million in revenues and has $3.7 million in net worth. Based on this information, what is the economic profit for Harry's Hookas?
A) $200,000 B) $700,000 C) $900,000 D) $1.1 million
According to Friedman and Phelps's analysis of the Phillips curve,
a. the unemployment rate will be below its natural rate whenever inflation is negative. b. the unemployment rate will be below its natural rate whenever inflation is positive. c. the unemployment rate will be below its natural rate only if inflation is less than expected. d. the unemployment rate will be below its natural rate only if inflation is greater than expected.