How does a monopoly have complete control over the price of its product?
What will be an ideal response?
A monopoly has some control over the price of its product because it is the only firm in the industry. No firm, however, can set its price at some astronomical figure simply due to lack of competition. The firm would find that no customers would be willing to pay an exorbitant price. Therefore, the firm in a monopoly position must consider the demand for its product and set the price at the most profitable level.
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Under which of the following conditions will an international organization move toward an integrated structure?
A) when it has a limited percentage of its total business in foreign countries B) when it has worldwide product diversity and a large-scale foreign business C) when it has low product diversity contributing a large portion of its foreign business D) when it has a limited number of product divisions in the foreign countries
Volkswagen concentrates on the small-car market and Porsche on the sports car market. These would be examples of what is called ________
A) single-segment concentration B) selective specialization C) product specialization D) market specialization E) full market coverage
Externalities show that even if both parties to an exchange receive actual benefits from the exchange, other parties external to the exchange might be adversely affected.
Answer the following statement true (T) or false (F)
Parties with secondary liability to an instrument can only be sought after the instrument has been dishonored
Indicate whether the statement is true or false