The existence of a monopoly:
A. creates a gain of total surplus.
B. benefits the consumer.
C. benefits the monopolist.
D. creates more consumer surplus.
C. benefits the monopolist.
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In a circular-flow diagram, the total value of ________ equals the total value of ________
A) spending on goods and services; income B) GDP; GNP C) capital; labor D) exports; imports
Answer the following questions true (T) or false (F)
1. If the demand for a product increases and the supply of the same product decreases, the equilibrium price will increase. 2. If the demand for a product decreases and the supply of the same product increases, the equilibrium quantity will increase. 3. As the number of firms in a market increases, the supply curve will shift to the left and the equilibrium price will rise.
A market where a few firms produce most of the output is called a(n)
A. oligopolistic market. B. monopolistic market. C. monopolistically competitive market. D. perfectly competitive market.
If the representative firm in a purely competitive industry is in short-run equilibrium and at its current output level, its marginal cost exceeds its average total cost, then we can conclude that:
A. The firm is suffering economic losses B. The firm is not maximizing profits in the short run C. Some firms will exit the industry in the long run D. Other firms will enter the industry in the long run