For a firm to become a monopoly in an industry
A) barriers to entry must exist.
B) the firm must charge higher prices than its competitors.
C) the firm must produce a product with the best quality.
D) the firm will engage in unfair practices to drive all competitors out of the market.
Answer: A
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In the above figure, what is the equilibrium level of real consumption spending?
A) $3.0 trillion B) $0.0 trillion C) $1.0 trillion D) $2.0 trillion
When natural resources are commonly owned, the exhaustion of these resources are evenly spread over current and future periods
a. True b. False Indicate whether the statement is true or false
If a competitive firm's short run average cost curve lies above the price of the product, we can conclude that the firm
a. is earning a huge profit. b. is incurring losses. c. is earning zero economic profits. d. is earning a normal profit.
Suppose the growth rate of the firm's profit is 5 percent, the interest rate is 6 percent, and the current profits of the firm are $100 million. What is the value of the firm?
A. $111.5 million B. $10,600 million C. $1,766.6 million D. None of the statements associated with this question are correct.