A firm is a monopoly if
a. it faces a demand curve for its product that equals market demand.
b. it is a very large firm.
c. it takes its rivals' actions into account when choosing its price and output levels.
d. its production decisions do not affect the price of its product.
a. it faces a demand curve for its product that equals market demand.
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Which of the following is a short-run decision for a muffin shop?
a. hire more workers b. add new ovens c. expand into the building next door d. open a second shop on the other side of town e. go out of business
Which of the following rates of growth in the money supply is likely to lead to the highest level of inflation in the economy?
a. 1 percent per year b. 2 percent per year c. 3 percent per year d. 4 percent per year
In a situation where a market failure occurs,
A. any government intervention will improve on the market outcome. B. there is nothing that the government can do to improve on the market outcome. C. government intervention might improve on the market outcome. D. it will always be preferable to have the government intervene in the market.
Assume we have a simplified banking system in balance-sheet equilibrium. Also assume that all banks are subject to a uniform 10 percent reserve requirement and checkable deposits are the only form of money. A commercial bank receiving a new checkable deposit of $100 would be able to extend new loans in the amount of:
A. $10. B. $90. C. $100. D. $1,000.