Monopolies that exist because economies of scale create a barrier to entry are called:

The producer price index is considered a good predictor of future consumer prices because increases in input prices:

A. are used by consumers to make decisions on what to buy. B. are accounted for in PPI, and therefore this automatically adjusts the CPI. C. are observed first in the PPI, adjusting the CPI downward. D. eventually make it to consumers when they buy the final product.

Which of the following is correct?

A. 1 - MPS = MPC - 1 B. 1 + MPS = MPC C. 1 - MPS = MPC D. 1 - MPS = MPC + 1