Which of the following is a difference between monopoly and perfect competition?
a. Positive economic profits earned by perfectly competitive firms result in deadweight loss, while positive economic profits earned by a monopoly result in the production of a socially efficient output level.
b. Positive economic profits earned by firms in a perfectly competitive market attract new firms into the market, causing profits to increase over time, while barriers to entry protect a monopolist's profits.
c. Positive economic profits earned by a monopolist attract new firms into the industry, while barriers to entry protect profits of a perfectly competitive firm.
d. Positive economic profits earned by firms in a perfectly competitive market attract new firms into the market, causing profits to decrease over time, while barriers to entry protect a monopolist's profits.
d
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A monopoly's output decision depends only on the shape of its marginal cost curve
Indicate whether the statement is true or false
By focusing the customers on the price of a product, you make
a. The demand for the product more inelastic b. The customers less price sensitive to the product c. Both A & B d. None of the above
If a bank receiving a new deposit of $200,000 would be able, as a result, to increase their lending by at most $150,000, then the required reserve ratio equals: a. 4%
b. 25%. c. 40%. d. 50%.
When implementing monetary policy, the variable the Federal Reserve watches most closely is the
a. required reserve ratio b. federal funds rate c. long term bond rate d. national debt e. short term corporate bond rate