Question

QUESTION 33 Profits of a monopoly are driven to zero a. Immediately in the short-run as assets freely move from low-valued uses to high-valued uses instantly b. In the long run because the assets eventually move from low to high valued use c. In the short run because the demand curve becomes more elastic d. In the long run because the demand curve becomes more inelastic QUESTION 34 Attractive industries have all the following attributes, except a. High supplier power b. Low rivalry c. High entry barriers d. Low buyer power QUESTION 35 Which of the following would shift the supply of Florida Oranges to the left? a a hurricane in Florida destroying a major part of the crop b. an increase in the price of water per unit, a major input, used to irrigate the orange trees c. one of the orange grooves shuts down d all of the above

Answer 1

Solution

33.d.in the long run because the demand curve becomes more inelastic.

34.Attractive  industries have all the following attributes except a.High Supplier Power

35.d.All of the above

When the supply decreases,the supply curve shifts leftwards.

36.a.A Bottleneck procedure

All the other 3 options are sources of economies of scale.

37.a.A compensating wage differential is difference between the wage of an individual working in favourable conditons and the wage of an individual working in unfavourable conditions.

38.d.Both a and b

The resources should be heterogeneous and immobile.

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