A monopoly:
A. is constrained because its decisions cannot affect market price.
B. is constrained by demand.
C. faces a horizontal demand curve.
D. is constantly threatened by the entry of new firms.
B. is constrained by demand.
You might also like to view...
According to the above table, which assumes that opportunity costs of producing goods X and Y are constant, the opportunity cost of producing one unit of Good X is ________ units of Good Y for Chen and ________ units of Good Y for Holly
A) 25; 100 B) 0.5; 2.5 C) 2; 0.4 D) 100; 25
The Navigation Acts
a. placed tariffs on the import of British goods by the colonies. b. provided for the free trade of colonial goods, including tobacco, indigo and sugar. c. required all colonial trade to be carried on English vessels. d. were abolished in 1700.
Assume that the central bank sells government securities in the open market. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to real GDP and the nominal value of the domestic currency in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium
a. Real GDP rises and nominal value of the domestic currency falls. b. Real GDP falls and nominal value of the domestic currency remains the same. c. Real GDP and nominal value of the domestic currency remain the same. d. Real GDP rises and nominal value of the domestic currency remains the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Partially-flexible exchange rates:
A. produce fewer exchange rate changes in general than fixed exchange rates. B. provide governments with a more independent monetary policy than flexible exchange rates. C. mix market forces with government intervention in a way that permits the exchange rate to respond to long-term balance of payments problems. D. mix market forces with government intervention in a way that allows exchange rates to respond to speculative pressures.