What are the characteristics of monopolies?
What will be an ideal response?
A monopoly has one firm, a unique product, the firm faces the market demand curve, and there are large barriers to entry.
You might also like to view...
According to your textbook, expansionary monetary policy
A) encourages entrepreneurs to invest in projects that only appear profitable. B) creates a temporary "boom," or economic expansion. C) will ultimately be followed by a "bust," as entrepreneurs learn of their forecasting errors. D) tends to generate all of the above.
In a study of whether prices are sticky or not, Alan Blinder supervised interviews of corporate executives on the frequency with which their firms change prices and found that
a. 55 percent of firms changed prices only once a year or less. b. over 20 percent of the firms changed prices more than 12 times per year. c. 10 percent of companies changed prices 4 to 12 times per year. d. there is not a considerable departure from auction-market behavior.
Economic growth was stimulated by suburbanization
A. in the first five years after World War II. B. in the 15 years following World War II. C. from the mid 1960s to the mid 1970s. D. after the Persian Gulf War.
In short-run equilibrium for a competitive firm, economic profits:
A. will be positive. B. will be negative. C. will be zero. D. may be positive, negative, or zero.