To have a monopoly in an industry there must be
A) barriers to entry so high that no other firms can enter the industry.
B) a patent or copyright giving the firm exclusive rights to sell a product for 20 years.
C) an inelastic demand for the industry's product.
D) a public franchise, making the monopoly the exclusive legal provider of a good or service.
Answer: A
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Catherine's demand for fish takes the conventional form of a downward-sloping demand curve. When the price of fish falls, her consumer surplus
a. increases b. decreases c. remains unchanged because the demand curve didn't change d. remains unchanged because the quantity demanded remains unchanged e. decreases only if price elasticity of demand is greater than one
If the cross-price elasticity of two goods is negative, then the two goods are
a. necessities. b. complements. c. normal goods. d. inferior goods.
Refer to the information provided in Figure 13.5 below to answer the question that follows. 
Figure 13.5 Refer to Figure 13.5. The Silver Exchange has a monopoly over the sale of solid silver walking sticks. The Silver Exchange has hired you as an economic consultant. You should advise this monopolist to
A. produce in the short run but exit the industry in the long run. B. shut down in the short run but expand capacity in the long run. C. shut down in the short run and exit the industry in the long run. D. produce in the short run and expand capacity in the long run.
A change in the demand for automobiles may be caused by a _______________.
A. change in the price of gasoline B. change in income C. change in tastes and preferences D. All of these choices