What is a monopolist, and what is required for a monopolist to earn profits in the long run?
What will be an ideal response?
A monopolist is a single supplier of a good or service for which there is no close substitute. For the firm to receive economic profits in the long run, there must be some type of barrier to entry that keeps entrants in search of profits out of the industry.
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What is the Principal of Optimization at the Margin? Explain with an example
What will be an ideal response?
A currency drain is cash ________ and has ________ effect on the money multiplier
A) draining into the banks; an B) held at the Fed; an C) draining into the banks; no D) held as reserves; no E) held outside the banks; an
The table above shows the revenue figures for the top four firms along with a total for the remaining firms in the fast-food industry. What is the four-firm concentration ratio for the industry?
A) 200 B) 20 percent C) 25 percent D) 80 percent E) 100 percent
In a competitive market, the actions of any single buyer or seller will
a. discourage entry by competitors. b. influence the profits of other firms in the market. c. have a negligible impact on the market price. d. Both a and b are correct.