Elmer's Glue has captured the market for school glue. It is preferred by both students and parents alike. It takes very little capitalization to enter the market, but nobody succeeds in doing so. The glue clearly needs no patents or secret formulas. This type of market is called a(n)
A. monopolistic competition.
B. pure or perfect competition.
C. monopoly.
D. oligopoly.
Answer: A
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In modern economies, the supply of money depends mainly on the economy's ________
A) tax rates B) mining of precious metals C) net exports D) growth of output of goods and services E) none of the above
With voluntary exchange, a buyer and seller agree to do business together
a. only for the benefit of the seller b. only for the benefit of the buyer c. for the mutual benefit of both d. for the benefit of neither
Lars is CEO of a large monopolistic firm. He looks at what is going on with revenues and pricing, and being knowledgeable about running a monopoly, he decides to reduce production. What does this tell us about his firm?
a. Marginal cost is equal to marginal revenue. b. Marginal revenue is exceeding marginal cost. c. Marginal cost is exceeding marginal revenue. d. Marginal revenue is equal to price.
The President of the NY Federal Reserve Bank is always a member of the Federal Open Market Committee.
Answer the following statement true (T) or false (F)