Answer the following questions true (T) or false (F)
1. The market demand curve facing a monopolist is more elastic than the market demand curve facing a monopolistic competitor.
2. Joe Santos owns the only pizza parlor in a small town that is also home to a McDonald's, a Taco Bell, and a Kentucky Fried Chicken. Using a broad definition of a monopoly, Joe has a monopoly if the menu items sold at the other restaurants are not considered close substitutes for the food sold at the pizza parlor.
3. A snack shop inside a hotel in a busy city has a monopoly on food sales if it is the only food vendor in the hotel that is open 24 hours a day.
1. FALSE
2. TRUE
3. FALSE
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Ed Sike is tired of working as a special events manager at the college. He quits his price-searcher job to devote himself to studying full time. Ed Sike is now
A) a price taker. B) a price giver. C) unemployed. D) no longer employed. E) All of the above.
Suppose a Treasury bond will mature in 4 years. If the bond pays a coupon of $200 per year and will make a final par value payment of $5,000 at maturity, what is its price if the relevant market interest rate is 3%?
A) $5,185.85 B) $5,304.26 C) $5,743.42 D) $6,011.82
What stage of the business cycle immediately follows the trough?
a. Peak. b. Expansion. c. Recession. d. Depression.
The aggregate demand curve tells us the equilibrium level of real GDP corresponding to any price level
a. True b. False