Firms can have a high degree of monopoly power and not be a perfect monopoly if they:
A. control 80 to 90 percent of the market.
B. intimidate the other businesses in the market.
C. have only a small number of competitors.
D. are the single producer of a product.
Answer: A
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When the supply of a good increases, the quantity supplied at each price is increasing as well
Indicate whether the statement is true or false
A natural monopoly
a. is a monopoly in the production of raw materials. b. occurs when one firm can supply the entire market more cheaply than can a number of firms. c. is one result of a patent. d. results from decreasing returns to scale.
Assume a monopolist charges a price corresponding to the intersection of the marginal cost and marginal revenue curves. If this price is between its average variable cost and average total cost curves, the firm will:
a. earn an economic profit. b. continue to operate in the short run. c. shut down. d. all of these are true.
If the U.S. inflation rate falls relative to the Mexican inflation rate, which of the following will happen in the market for pesos?
a. A rightward shift of the demand curve, a leftward shift of the supply curve, and an appreciation of the peso b. A leftward shift of the demand curve, a rightward shift of the supply curve, and an appreciation of the peso c. A leftward shift of the demand curve, a leftward shift of the supply curve, and a depreciation of the peso d. A rightward shift of the demand curve, a rightward shift of the supply curve, and an appreciation of the peso e. A leftward shift of the demand curve, a rightward shift of the supply curve, and a depreciation of the peso.