Which of the following statements is true?
A) Monopolists are price makers. All other firms are price takers.
B) Unlike other firms, a monopolist's demand curve is the same as the market demand curve.
C) Only monopoly firms are granted patents and copyrights.
D) Unlike other industries, monopoly industries have high barriers to entry.
B
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Which of the following explains the increase in income inequality since 1980?
A) A widening gap between the wages of skilled and extensively-educated workers and the wages of those with fewer skills and less education B) A rise in the number of single-parent families at low income levels and a rise in two-parent two-earner families at higher income levels C) An increase in the supply of less-skilled workers combined with an increase in demand for more highly-skilled workers D) All of the above.
Daniel was just laid off from his teaching job at the local high school due to state budget cuts resulting from the reduction in tax revenue during the recent economic downturn. Daniel would best be categorized as
A) frictionally unemployed. B) structurally unemployed. C) cyclically unemployed. D) seasonally unemployed.
When firms participate in group health insurance for all employees, it
A) raises rates for everyone, because it brings unhealthy people into the pool. B) raises rates for unhealthy people. C) may lower rates for all people to the extent that it keeps healthy people in the pool. D) prevents unhealthy people from "selecting out," to the detriment of healthy people. E) increases the amount of information available to insurers about the population.
When the Fed decreases the money supply, interest rates:
a. rise. b. fall. c. are unaffected. d. rise and then fall. e. fall and then rise.