Several Firms Want to Be the Only Horse Carriage Service

question 217

Multiple Choice

Several firms want to be the only horse carriage service in a small tourist town and must pay the city for a license to operate as a monopoly.Competition among the potential firms will result in

• A) bidding up the price of the license so that the winning firm makes $0 economic profit.
• B) the winning firm making an economic profit because it will be a price maker.
• C) the winning firm making an economic profit because it will have no competition.
• D) the winning firm making an economic profit because rent seeking cannot occur.
• E) a $0 economic profit because monopolies are illegal.

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Definitions:

Hyperkalemia

A condition characterized by an abnormally high concentration of potassium in the blood, which can affect heart function and overall health.

Iron Deficiency

A condition resulting from inadequate levels of iron in the body, leading to anemia and other health issues.

Hypokalemia

A condition characterized by lower than normal levels of potassium in the bloodstream, which can affect muscle function and overall health.

Blood Type

A classification of blood based on the presence or absence of inherited antigenic substances on the surface of red blood cells.