Which of the following is an assumption of the monopoly model?
a. There exists a large number of buyers and sellers.
b. There are no close substitutes of the good.
c. The firm faces a horizontal demand curve.
d. There is free entry and exit of firms.
e. The firm is a price taker.
b
You might also like to view...
The sharp decline in domestic freight costs during the antebellum period was primarily due to the introduction of:
a. railroads. b. paved roads. c. clipper ships. d. canals and steamboats.
If the economy is experiencing less than full-employment, the Keynesian school recommends that the government:
a. do nothing to stimulate the economy. b. undertake fiscal policy to stimulate aggregate demand. c. undertake fiscal policy to stimulate aggregate supply. d. balance the budget to stimulate aggregate demand.
The highest form of competition is called
a. absolute competition. b. cutthroat competition. c. perfect competition. d. market competition.
A decrease in the price of a good would
a. increase the supply of the good. b. increase the quantity demanded of the good. c. give producers an incentive to produce more to keep profits from falling. d. shift the supply curve for the good to the left.