Possible benefits of a monopoly include which of the following (choose all that apply)?
a. a savings of fixed costs because only one firm supplies quantity demanded
b. greater opportunities for research due to long-run positive economic profits.
c. government regulation is more effective because the firm is "too big to fail.".
d. goods and services are provided at a lower price than under perfect competition because of a monopoly's decreasing average cost curve.
a, b
You might also like to view...
State and local governments spend about ________ of their expenditures on education
A) 14 percent B) 74 percent C) 59 percent D) 34 percent E) 19 percent
The "Big Mac Theory of Exchange Rates" tests the accuracy of the purchasing power parity theory. In July 2015, the Economist reported that the average price of a Big Mac in the United States was $4.79
In Mexico, the average price of a Big Mac at that time was 49 pesos. If the exchange rate between the dollar and the peso was 13.60 pesos per dollar, explain how it would be profitable to buy Big Macs in Mexico instead of in the United States.