Describe how near-monopoly behavior in internet industries has fostered aggressive competition
What will be an ideal response?
The near-monopoly companies have experienced significant economic profit in recent years, as the internet has become available to the average household in the United States. This phenomena has driven new firms to enter into the market and existing firms to expand their services. In the market for online advertisement, the addition of Google+ has created competition for Facebook. Advertisers now have multiple sites they can place their ads, lowering the price of ads. The additional competition reduces the profit for the individual firms.
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Suppose a monopolist faces the demand curve shown below. 
If you were to draw the monopolist's marginal revenue curve, it would:
A. intersect the horizontal axis at 35. B. intersect the vertical axis at $35. C. lie on top of the demand curve. D. have a slope equal to the reciprocal of the slope of the demand curve.
A marginally attached worker
i. does not have a job and has not looked for one in the last month. ii. is available and willing to work. iii. must work at least 1 hour per week. A) i only B) ii and iii C) iii only D) i and ii E) ii only
A movement along a supply curve is induced by a change in
A) input prices. B) taxes and subsidies. C) price expectations. D) the product's own price.
At market equilibrium, the total benefit that results from all the transactions is
A. the sum of the producer surplus and the consumer surplus. B. the consumer surplus minus the producer surplus. C. the entire area under the demand curve up to the quantity exchanged. D. the producer surplus minus the consumer surplus.