One way that perfect competition and monopoly differ is that in
A. monopoly, the firm produces less than the total market quantity supplied.
B. perfect competition, there is only one firm in the industry.
C. perfect competition, there is a difference between firm and industry demand.
D. monopoly, there is a difference between firm and industry demand.
Answer: C
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Control of monetary policy rests with
A) Congress. B) the President. C) the Federal Reserve. D) the Comptroller of the Currency. E) the U.S. Treasury.
Refer to the figure above. What is the change in consumer surplus when the market changes from perfect competition to a monopoly?
A) The consumer surplus increases by 30 units. B) The consumer surplus decreases by 45 units. C) The consumer surplus increases by 90 units. D) The consumer surplus decreases by 135 units.
Monopolistically competitive industries have significant barriers to entry and exit
a. True b. False Indicate whether the statement is true or false
Once decision makers fully adjust to an increase in the general price level,
a. the actual rate of unemployment will exceed the natural rate of unemployment. b. the actual rate of unemployment will be less than the natural rate of unemployment. c. the rate of output will exceed the economy's long-run capacity. d. output will return to the full-employment level.