A purely monopolistic firm:
A. has no entry barriers.
B. faces a downsloping demand curve.
C. produces a product or service for which there are many close substitutes.
D. earns only a normal profit in the long run.
Answer: B
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The application of economic analysis to human resources issues is called personnel economics
Indicate whether the statement is true or false
The introduction of a tax by the government will: a. have no effect on real GDP since real GDP comprises consumption expenditure, investment expenditure, and government expenditure. b. affect consumption through a change in disposable income
c. affect consumption through its effect on investment. d. affect government spending since the government levies the tax. e. increase real GDP since it enables the government to increase spending.
If the interest rate increases due to an increase in government purchases, the rise in real GDP will be greater than what would have occurred if the interest rate had remained stable
a. True b. False
The term "market basket" means a
A. collection of goods that can fit into an average shopping cart. B. collection of goods that is purchased during a holiday season. C. collection of goods that changes every year and is defined by Congress. D. collection of goods that is used by a typical family.