A monopolist always earns an economic profit
a. True
b. False
Indicate whether the statement is true or false
False
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Refer to Figure 11.2. Assume the economy is in equilibrium at 1, where real GDP equals potential GDP, and then the economy experiences a negative demand shock. Other things equal, the negative demand shock is best represented by a(n)
A) movement up along the Phillips curve. B) movement down along the Phillips curve. C) upward shift of the Phillips curve. D) downward shift of the Phillips curve.
An "opportunity cost" may be described as:
a. the value of what must be gtiven up b. the opporrtunity foregone c. the value of the next best alternative d. the correct measure of cost e. all of these are correct
Which of the following kinds of markets most closely resembles a monopoly market in its price and output level?
A. A market in which firms are engaged in a price conspiracy. B. A monopolistically competitive market. C. An oligopoly market. D. None of the choices will be similar in outcome.
The classic examples of natural monopolies over the years have been
A. public utilities. B. auto manufacturers. C. retail trade. D. agriculture.