Describe the conditions under which monopoly exists. Give two examples
What will be an ideal response?
Monopoly occurs when one firm produces a unique good or service for which there are no close substitutes. No competing firms can enter the market because there are barriers to entry. These barriers can be legal or natural. Your local water company and the U.S. Postal service are monopolies.
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Transaction costs are the costs incurred by individuals dealing with one another. ?
Answer the following statement true (T) or false (F)
The net asset value of an open-end mutual fund is equal to the
A) profits of the fund. B) dividends paid out by the fund. C) market value of the securities held by the fund. D) price-earnings ratio of the fund.
"The demand for money is infinite since everyone wants more money." Do you agree or disagree with this statement? Why?
What will be an ideal response?
The marginal product curve is a mirror image of
a. The average cost curve b. The average fixed cost curve c. The total cost curve d. The marginal cost curve