What is a monopoly? Can a firm be a monopoly if close substitutes for its product exists?
What will be an ideal response?
A monopoly is the only seller of a good or service that does not have a close substitute. The firm can't be a monopoly if a close substitute for its product exists.
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The elasticity of demand for a particular perfectly competitive firm's output is positively related to the number of firms supplying the market
Indicate whether the statement is true or false
Budgets should be organized along line item budgets rather than program budgets in order to facilitate an evaluation of the effectiveness of government spending on an issue
a. True b. False
Opportunity cost is always measured in dollar terms, rather than in terms of real goods and services
a. True b. False
Present value is
A) the value of a future amount expressed in today's dollars. B) the value of a dollar received a year from now, expressed in terms of its future value. C) the inverse of the interest rate. D) the nominal value instead of the real value of something.