You are shown a graph of a monopolist in long-run equilibrium and a graph of a monopolistically competitive firm in short-run equilibrium. How could you tell which is which?
A. In the graph of monopolistic competition, the MR curve could be closer to the demand curve.
B. In the graph of monopoly, the MR curve would be closer to the demand curve.
C. You probably could not.
D. In the graph of monopoly, the MC would slope upward.
Answer: C
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Defining global poverty in the context of American standards would classify most people in the developing world as poor
Indicate whether the statement is true or false
Economists generally agree that in reducing poverty, policies should be sought that do the
A. greatest good for total production. B. least harm to work incentives. C. most good for the poor. D. least harm to equality of income.
A natural monopoly is
A. An industry that is dominated by a single firm. B. An unregulated monopoly. C. An industry in which one firm can achieve economies of scale over the entire range of market supply. D. A monopoly that always benefits society even when it is unregulated.
Stickiness of wages:
A. is unrelated to stickiness of prices. B. lessens the stickiness of prices. C. reinforces stickiness of prices. D. may or may not reinforce stickiness of prices.