Which of the following statements about a monopoly is FALSE?
A) Monopolies have no barriers to entry or exit.
B) The good produced by a monopoly has no close substitutes.
C) A monopoly is the only producer of the good.
D) None of the above; that is, all of the above answers are true statements about a monopoly.
A
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Suppose that an indifference curve for Jack is drawn measuring quantities of pencils along the horizontal axis and quantities of pens along the vertical axis. If the marginal value of an additional pencil is 3 pens for Jack, the slope of his indifference curve in this range is
a. 1/3. b. 3. c. 6. d. dependent upon the prices of the two goods
Suppose the price of product X increases. We would expect this price increase to
A. decrease the demands for both complementary good Y and substitute product Z. B. increase the demand for complementary good Y and decrease the demand for substitute product Z. C. increase the demands for both complementary good Y and substitute product Z. D. decrease the demand for complementary good Y and increase the demand for substitute product Z.
Refer to Figure 7-4. The efficient price of medical services is
A) $25. B) $40. C) $55. D) >$55.
A higher real interest rate typically induces consumers to:
a. Save less b. Purchase more imported goods c. Save more d. Purchase more goods that are bought using credit