In a monopoly market,
A. profits will always be positive because the firm is the only supplier in the market.
B. other firms have no incentive to enter the market.
C. the demand facing the firm is downward-sloping because it is the market demand.
D. a and b
E. none of the above
Answer: C
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A) consumption expenditure. B) consumption expenditure and investment. C) consumption expenditure, investment, government expenditure on goods and services, and net exports of goods and services. D) consumption expenditure, investment, and government expenditures. E) wages, rent, interest, and profit.
The public policies designed to mitigate the effects of monopolies are:
A. highly debated issues. B. proven to increase benefits more than increase costs. C. highly effective. D. well-defined and accepted.
A plastics manufacturer can make either toys or containers. If the demand for toys increases, then the:
a. Supply of containers will decrease b. Supply of containers will increase c. Demand for containers will decrease d. Demand for containers will increase
The above table gives some production and cost information for Flaming Fernando's, a restaurant that sells Fiery Frijoles. What is the average variable cost of producing 1,000 frijoles?
A) $1 B) $2 C) $3 D) More information is needed to determine the answer.