A monopoly is distinguished from a firm operating under any other market structure in the following way: the monopoly
A) can choose its output level.
B) faces a demand curve which is identical to the market demand curve.
C) can choose its level of cost.
D) does not produce at a profit-maximizing level of output.
E) charges a price higher than its average revenue.
Ans: B) faces a demand curve which is identical to the market demand curve.
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In monopolistic competition, there are ________
A) many firms selling products for which no good substitutes exist B) many firms selling similar but slightly different products C) many firms, each selling an identical product D) a small number of firms, each selling an identical product
China has experienced particularly high rates of economic growth as a result of
A. High rates of government spending. B. High rates of capital investment. C. High rates of consumer spending. D. Low rates of saving.
The act of buying at a low price in one place and selling at a high price in another place is called relative pricing.
Answer the following statement true (T) or false (F)
A decrease in interest rates can ________ the demand for stocks as stocks become relatively ________ attractive investments as compared to bonds
A) increase; more B) decrease; less C) decrease; more D) increase; less E) increase; similar