Unlike perfectly competitive firms, monopolists can control
a. how much of the good to produce
b. what inputs to use in production
c. its plant size
d. the price charged per unit of output
e. the quality of inputs used in production
D
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Which of the following statements is true of money?
A) Paper money was invented around 1,000 A.D. in China. B) Paper money was the first form of money to be invented. C) One of the limitations of paper money is that it does not function as a store of value. D) Fiat money was used in the barter system of exchange.
Discuss the characteristics of a perfect competitive industry and which real-life industries come closest to this type of market structure.
What will be an ideal response?
If the government wishes to maximize its tax revenue, it should
A) recognize that too high of a tax rate can decrease the tax base. B) engage in static tax analysis. C) recognize that an increase in the tax rate will lead to an increase in tax revenues. D) use only flat taxes.
How does the firm-specific demand curve in a perfectly competitive market compare to that in a monopoly?
A. The firm-specific demand curve in a perfectly competitive market is horizontal. The demand curve in a monopoly is downward sloping. B. They are the same. C. The firm-specific demand curve in a perfectly competitive market is horizontal. The demand curve in a monopoly is upward sloping. D. The firm-specific demand curve in a perfectly competitive market is vertical. The demand curve in a monopoly is horizontal.