A firm can be the sole supplier of a good and is still not a monopolist if
A) the firm is not large.
B) the good produced is not important to the economy.
C) the firm is not making excessive profits.
D) there are very close substitutes for the good.
Answer: D
You might also like to view...
Suppose that a violent earthquake causes the uninhabited Hawaiian island of Mokuauia (also called Goat Island) to fall into the Pacific Ocean. No people are killed or injured, and since the island is undeveloped, no buildings are destroyed. The island was a source of tourist income for Hawaiian landowners. Which of the following statements correctly describes the rents earned by the people who
own land on the surrounding islands? a. As the supply of vacation land decreases, the marginal productivity of the remaining land will decrease; thus rents will decrease. b. As the supply of vacation land decreases, the marginal productivity of the remaining land will increase; thus, rents will decrease. c. As the supply of vacation land decreases, the marginal productivity of the remaining land will increase; thus, rents will increase. d. There would be no change in the rents earned by the other landowners because the effects of supply and demand would exactly cancel each other out.
A newspaper headline reads "A New Wave of Workers Enters the Job Market!" This wave of young, new entrants to the labor market is likely to lead to
A) no effect on the unemployment rate. B) an increase in the natural unemployment rate. C) a decrease in the natural unemployment rate but an increase in the actual unemployment rate. D) a decrease in the unemployment rate. E) a decrease in the country's potential GDP.
Refer to Figure 4-2. What area represents producer surplus at a price of P1?
A) A + C B) A + C + E C) C D) C + E
Most economists view the United States as an ongoing experiment that raises serious doubts about the virtues of free trade
a. True b. False Indicate whether the statement is true or false