The fundamental cause of monopoly is
a. incompetent management in competitive firms.
b. the zero-profit feature of long-run equilibrium in competitive markets.
c. advertising.
d. barriers to entry.
d
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One disadvantage of a floating exchange rate system compared to a fixed or managed float exchange rate system is
A) it does not allow the exchange rate to reflect demand and supply in the market. B) it is difficult to maintain. C) it can worsen inflation if domestic prices of imports rise quickly. D) it eliminates the possibility of depreciation during a recession.
In the classical model, less consumption and more savings would
a. increase aggregate supply and output. b. reduces aggregate demand and output.. c. decrease real interest rates and output. d. cause the price level to rise with no effect on output. e. have no effect on output or the price level.
The market-clearing price is:
a. the price at which the market is in equilibrium. b. the price at which mutually beneficial trade take place. c. the price at which sellers earn the maximum profit. d. the price at which consumer surplus is zero.
A monopolistic competitor, like a(n) ____________, faces a downward-sloping demand curve.
a. monopolist b. perfect competitor c. oligarch d. new entrant