The extent to which a firm is viewed by consumers as being a monopoly depends primarily on
a. how the government defines a monopoly
b. whether they believe there are close substitutes for the good it produces
c. the level of profits earned by the firm
d. the difference between price and marginal cost of the good it produces
e. the size of the firm
B
You might also like to view...
Emissions permits allow polluters to pay for the right to pollute a specified amount.
Answer the following statement true (T) or false (F)
Members of the Federal Reserve Board of Governors can set monetary policy in relative independence of political pressures because
A) monetary policy is too complex to be understood by the general public. B) their authority derives from the Constitution rather than popular election. C) they are not allowed to belong to any political party. D) they hold their positions for fourteen-year terms.
Those who criticize individuals who choose to drive a relatively inefficient sport utility vehicle (SUV) might mistakenly
A) assume everyone faces the same relative prices. B) assume everyone has the same preference set. C) assume everyone has the same budget constraint. D) All of the above.
Figure 10-3
?
In Figure 10-3, the perfectly competitive firm is realizing a
A. loss equal to ABCE. B. profit equal to ABCE. C. profit equal to ABDF. D. loss equal to ABDF.