A monopoly is characterized by all of the following except
A) the firm has market power.
B) there are no close substitutes to the firm's product.
C) there are only a few sellers, each selling a unique product.
D) entry barriers are high.
C
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Suppose you are paid a wage of $50 per hour. if your marginal income tax rate is 20%, then for every additional hour you work, your after-tax wage is
A) $10. B) $20. C) $25. D) $40.
The above figure depicts the Edgeworth box for two individuals, Al and Bruce. The contract curve can be found by connecting points
A) a and b. B) a and c. C) b and d. D) c and d.
Firms can have a high degree of monopoly power and not be a perfect monopoly if they:
A. are the single producer of a product. B. control 80 to 90 percent of the market. C. have only a small number of competitors. D. intimidate the other businesses in the market.
Answer the following statements true (T) or false (F)
1) U.S. immigrants (legal and illegal combined) have lower prison rates than the native-born population. 2) Illegal immigration has little effect on the average level of wages in the United States. 3) Economic theory suggests that immigration should be allowed into a country until the marginal benefit of the last immigrant is zero. 4) The optimal level of immigration occurs where marginal benefit is at its greatest.