What is the barrier to entry in a monopoly?
a. There is no barrier; anyone can enter the market.
b. It a minor barrier; some can enter the market.
c. It varies from industry to industry.
d. It is a complete barrier; no entry is allowed.
Answer: d. It is a complete barrier; no entry is allowed.
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What will be an ideal response?
Suppose the economy's production function is Y = AK0.3N0.7. If K = 2000, N = 100, and A = 1, then Y = 246. If K and N each increase by 5 percent, and A is unchanged, by how much does Y increase?
A) 5% B) 10% C) 15% D) 20%
One effect of the lemons problem in the used car market is that
a. the market is efficient b. without reliable information, lemons become increasingly common c. no good cars are offered on the market d. no lemons are offered on the market e. good cars sell at more than their market value
An indifference curve is:
a. downward sloping and concave to the origin. b. downward sloping and convex to the origin. c. upward sloping and concave to the origin. d. upward sloping and convex to the origin.