If a perfectly competitive industry is taken over by a monopolist, the market price will rise
a. due to improvements in technology
b. assuming that technology is unchanged
c. and output will rise
d. unless barriers to entry are imposed
e. until they equal marginal revenue
B
You might also like to view...
An explanation for the low saving rate in the United States consistent with the demonstration effect includes:
A. well-developed financial markets making it easy to borrow against home equity. B. large and persistent capital gains. C. households spending beyond their means to keep up with community standards. D. relatively generous government assistance for the elderly and large down payments required for home purchases.
Why does competition lead to lower prices for consumers?
A. Companies do not lower prices for consumers. B. Companies bid down each other to get your business. C. Companies bid against each other to get workers at minimum wage. D. Companies can find cheaper resources.
A rightward shift of the short-run aggregate-supply curve results in a more favorable trade-off between inflation and unemployment
a. True b. False Indicate whether the statement is true or false
The gross domestic product is not a good measure of the standard of living in a nation because it:
A. Includes the cost of health insurance B. Excludes payments for pollution control equipment C. Does not account for the size of the population D. Does not account for the cost of police protection