For a true, or pure, monopoly, ______.
a. there is only one seller of the product
b. no close substitutes are available
c. the firm and the industry are the same
d. it must be virtually impossible for other firms to overcome barriers to entry
e. all of these
Ans: e. all of these
You might also like to view...
The internal rate of return equals the cost of capital when
A) NPV = 0. B) NPV > 0. C) NPV < 0. D) None of the above
In the Keynesian model, planned investment is
A. negatively related to the interest rate. B. positively related to household consumption. C. negatively related to the level of income. D. positively related to the wage rate.
Should people typically pay more attention to their real income or their nominal income? If you choose the latter, why would that make sense in today’s world? Would your answer be the same for the 1970s?
What will be an ideal response?
In the long run, the representative firm in monopolistic competition tends to have
A. economic profits B. no product differentiation. C. a perfectly elastic demand curve. D. excess capacity.