When a second firm enters a monopolist's market,
A. the market price will rise.
B. the quantity produced by the first firm will decrease.
C. the first firm's profits increase.
D. All of these will occur.
Answer: B
You might also like to view...
Which of the following is NOT true when there are large economies of scale such that one firm can produce at a lower average cost than can be achieved by multiple firms?
A) This situation produces a natural monopoly. B) Proportional increases in output yield proportionally small increases in total cost. C) The long-run average cost curve of the firm will increase at a low level of output. D) There will only be one firm in this industry.
Which of the following does NOT describe the intended purpose of the antitrust laws of the United States?
A. to prohibit certain economic activities that promote trade B. to reduce the power of monopolies C. to promote competition within the economic system D. to restrict the formation of monopolies
Typically, an individual takes only one newspaper from the bin because
A) of the low marginal utility of additional newspapers. B) total utility will rise with consumption of more than one newspaper. C) marginal utility increases with the first consumption of newspapers. D) there are limited amounts of newspapers in the bin.
If no one can be excluded from consuming its benefits and there is no rivalry in consumption, then the good is a ________ good.
A. free B. Pareto C. public D. private