Natural monopolies are firms that
a. have a downward-sloping long-run average cost curve over the entire range of market demand
b. have an upward-sloping long-run average cost curve over the entire range of market demand
c. are protected against the entry of new firms by patents, licenses, or other legal restrictions
d. control a nonreproducible resource that is critical to production
e. have been created over time by the mergers of many smaller firms
A
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Using the data in the above table, if saving equals $650 billion and exports are greater than imports,
A) the government sector must run a deficit. B) net taxes will be greater than $1300 billion. C) net taxes will be less than $650 billion. D) government expenditures must increase.
Jeremy is thinking of starting up a small business selling NASCAR memorabilia. He is considering setting up his business as a sole proprietorship. What is one advantage to Jeremy of setting up his business as a sole proprietorship?
A) As a sole proprietor, Jeremy would have the ability to share risk with shareholders. B) As a sole proprietor, Jeremy would have both ownership and control over the business. C) As a sole proprietor, Jeremy would face limited liability. D) All of the above would be advantages of setting up his business as a sole proprietorship.