One way firms protect their monopoly is:
A. raising prices.
B. advertising.
C. taking advantage of short-run profits.
D. producing items that can be copied easily.
Answer: B
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Refer to Scenario 25-2. As a result of Kristy's deposit, Bank A's required reserves increase by
A) $2,000. B) $8,000. C) $10,000. D) $50,000.
Many developing countries have a static comparative advantage in the production of one or two primary products. In what ways might specialization in these products contribute to growth and development? In what ways might this fail to contribute?
What will be an ideal response?
Always There Wireless is wireless monopolist in a rural area. There are 200 customers, each of whom has a monthly demand curve for wireless minutes of Qd = 200 - 100P, where P is the per-minute price in dollars and Q is the number of wireless minutes. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.50 per minute and the largest fixed fee that it can, what is Always There's total profit?
A. $30,625 B. $30,000 C. $37,500 D. $7,500
The law of demand describes the:
A. inverse relationship between price and quantity demanded. B. direct relationship between price and quantity demanded. C. inverse relationship between income and quantity demanded. D. direct relationship between income and quantity demanded.