Which of the following statements is true?
a. A firm that has monopoly power is a price maker
b. A firm that has monopoly power is a price taker.
c. A firm that has monopoly power earns exorbitant profits.
d. A firm that has monopoly power has a perfectly elastic demand curve.
e. A firm that has monopoly power has a perfectly inelastic demand curve.
a
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The largest share of the U.S. private economy is
A) in manufacturing. B) competitive or monopolistically competitive. C) oligopolistic. D) monopolistic.
Retailers do not find it profitable to engage in promotional activities because
a. They reap the full benefits of the promotion b. They have to share the benefits of the promotion with the manufacturer c. They are unaware of competing retailers' ability to "free ride" on their efforts d. All of the above
An equilibrium in which each individual optimizes, taking market prices as given, is called
a. a Nash equilibrium. b. a Walrasian equilibrium. c. an Edgeworth equilibrium. d. a robust equilibrium.
If a country repeals an investment tax credit that, subsidizes domestic investment,
a. net capital outflow and the real exchange rate rise. b. net capital outflow rises and the real exchange rate falls. c. net capital outflow falls and the real exchange rate rises. d. net capital outflow and the real exchange rate fall.