If a single-price monopoly is making a large economic profit, what keeps other firms from competing away the profit?
A) There are barriers to entry.
B) The monopoly must be keeping the amount earned secret.
C) The market must be too small.
D) The existing firm's ATC must be too large to allow competitors to enter and earn an economic profit.
E) Nothing, other firms will enter and will compete away the profit.
A
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The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
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A) The demand for the yen will fall, and the supply of the yen will increase. B) The demand for the yen will fall, and the supply of the yen will fall. C) The demand for the yen will increase, and the supply of the yen will fall. D) The demand for the yen will increase, and the supply of the yen will increase.
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A. a. B. b. C. c. D. d.
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