A monopoly is characterized by all of the following except
A) there are only a few sellers, each selling a unique product.
B) entry barriers are high.
C) there are no close substitutes to the firm's product.
D) the firm has market power.
Answer: A
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Did the Bank of England intervene and perform its Lender of Last Resort responsibility to end the panic in August 2007?
A) yes B) no C) yes, only after a bank run and under pressure from the British financial industry D) no, since such support would present a moral hazard problem E) no, despite intense pressure from the chancellor of the exchequer
Which of the following statements is FALSE about the long-run effects of outsourcing?
A) Outsourcing allows countries to specialize in producing what they can produce most efficiently. B) More goods and services can be produced than in the absence of outsourcing. C) Globally wages will increase because of outsourcing. D) Employment levels will decrease globally as the result of outsourcing.
Why can superstar athletes and movie stars earn multimillion dollar salaries but superstar electricians and professors cannot?
a. Every customer in the market wants to enjoy the good supplied by the best producer. b. Technology makes it possible for the best producer to supply every customer at low cost. c. Customers are willing to pay more for entertainment than other services. d. Both a and b are correct.
In a perfectly competitive market, market prices are determined by:
A. individual consumers. B. the entrepreneur. C. market supply and market demand. D. individual producers.