A monopoly is an industry with
A. a single firm in which the entry of new firms is blocked.
B. a small number of firms each large enough to impact the market price of its output.
C. many firms each able to differentiate their product.
D. many firms each too small to impact the market price of its output.
Answer: A
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Refer to Figure 4-8. Suppose that instead of a rent ceiling, the government imposed a price floor of $2,000 per month for apartments. What is the quantity of apartments demanded at the new price?
A) 0 B) 200 C) 300 D) 500
Where interdependence is especially pronounced, competition among oligopolists will
A. resemble military tactics and strategies. B. disappear. C. lead to large increases in product output. D. entice more firms to enter the market.
If a market switches from being a perfectly competitive market to being a monopoly market, the decrease in consumer surplus is more than offset by an increase in producer profits.
Answer the following statement true (T) or false (F)
Economists measure opportunity cost
A) as equal to the sum of all the sunk costs. B) only when it is on the margin. C) as the best thing given u