After a corporate merger, Rebecca Jalamid became the CEO of a monopoly firm. She was surprised to learn that one benefit of being a monopoly was that her company
a. could charge as high a price as desired
b. was in a good position to capture the fruits of any innovation
c. received increased scrutiny from government regulators
d. started to attract potential competitors motivated to get a share of the economic profits of Rebecca's company
e. contributed to the deadweight loss in the economy
B
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What can good assumptions do?
a) cause economists to leave out important variables that make their theories worthless b) simplify the complex world and make it easier to understand c) further complicate an already difficult topic d) allow economists to see the "big picture" instead of only small segments
Which of the following is NOT an example of a flow variable?
A) inventory investment B) The federal deficit C) capital stock D) planned investment