Which of the following would be most likely to have monopoly power?
a. an online bookstore
b. a municipal water company
c. a local restaurant
d. a grocery store
b
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Depository institution create liquidity when they
A) buy assets that are liquid. B) borrow short and lend long. C) have liabilities that are illiquid. D) borrow long and lend short.
Suppose that Jeanna's income rises. If tomatoes are a normal good, what will happen to the quantity of tomatoes purchased by Jeanna? Is this an income effect, a substitution effect, or both? Explain
What will be an ideal response?
The supply of loanable funds curve shows:
a. a negative relationship between the interest rate and the quantity of loanable funds. b. a positive relationship between the interest rate and the quantity of loanable funds. c. an indirect relationship between the marginal rate of return on investment and the quantity of loanable funds. d. a negative relationship between the expected marginal rate of return on investment and the quantity of loanable funds.
The reserve-requirement ratio
A. is raised for banks that frequently use the Federal Reserve's discount window. B. applies uniformly to all accounts in all financial institutions. C. has been a relatively passive tool of monetary policy. D. implies a potential deposit expansion multiplier of approximately sixteen.