A monopoly is best defined as a firm that
A) produces a good or service for which no close substitute exists and which is protected by a barrier that prevents other firms from selling that good or service.
B) purchases its resources from only one supplier because of a barrier preventing it from buying from other suppliers.
C) produces a good or service for which no close substitute exists and that sells all its output to one buyer because there is barrier preventing other buyers from purchasing the good or service.
D) cannot control the price it sets for its good or service because there is barrier that prevents the firm from changing the price.
A
You might also like to view...
Which of the following policies would reduce frictional unemployment?
A) implementing an unemployment insurance policy B) a decrease in the minimum wage C) a job retraining program D) building an online job database that helps workers find jobs
By 1980, the unemployment rate in the United States for women was essentially the same as that for men
a. True b. False Indicate whether the statement is true or false
Table 24.1Monopoly Costs and RevenueQuantityPriceTotal Cost1$500$4002$450$6503$400$9504$350$1,3005$300$1,700In Table 24.1, using the profit maximization rule, a monopolist will produce
A. 3 units. B. 5 units. C. 1 unit. D. 4 units.
Refer to the graph. An increase in the Security Market Line from SML 1 to SML 2 and an increase in the average expected rate of return of asset A from Y 1 to Y 2 would be explained by:
A. arbitrage only.
B. a restrictive monetary policy only.
C. both arbitrage and a restrictive monetary policy.
D. neither arbitrage nor a restrictive monetary policy.