If close substitutes are available that have only slight product differentiation, a firm can still be a monopoly.
Answer the following statement true (T) or false (F)
False
A monopoly is one firm that is protected by high barriers to entry with substantial market power that sells a unique product. If a firm has close substitutes, it is operating in a monopolistic competitive market.
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The International Monetary Fund was created to achieve each of the following goals EXCEPT
A) lend funds to countries with international payment problems. B) lend funds to large government infrastructure projects. C) monitor and offer advice on the exchange rate policies of member nations. D) encourage free convertibility of the currencies of member nations.
Assume that the price elasticity of demand for movie theatres is -.85 during all evening shows but for all afternoon shows the price elasticity of demand is -2.28 . For the theatre to maximize total revenue, it should
a. Charge the same price for both shows, holding other things constant. b. Charge a higher price for the afternoon shows and lower price for the evening shows, holding other things constant c. Charge a lower price for the afternoon shows and higher price for the evening shows, holding other things constant d. Need more information
The monopoly producer
a. sets MU equal to P. b. sets MR = MC. c. has MC > MU. d. sets MR = P.
Unlike in the 1930's, farmers today can insure themselves against price swings that would impact them adversely through the futures market
Indicate whether the statement is true or false