In the case of pure monopoly:
a. one firm is the sole producer of a good or service which has no close substitutes
b. the firm's profit is maximized at the price and output combination where marginal cost equals marginal revenue
c. the demand curve is always elastic
d. a and b only
e. a, b, and c
d
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The clothing industry has many firms with differentiated products and no barriers to entry. The cereal industry has a few firms with either identical or differentiated products and moderate barriers to entry
The food industry is characterized as ________ and the cereal industry is characterized as ________. A) perfect competition; monopolistic competition B) monopolistic competition; oligopoly C) oligopoly; monopolistic competition D) perfect competition; perfect competition E) monopolistic competition; monopoly
Network externalities
A) prevent the dominance of a market by one firm. B) are created when celebrity endorsements of products lead to a surge in the demand for those products. C) exist when the usefulness of a product increases with the number of consumers who use it. D) can only exist when there are economies of scale.
Economics is a part of the
A) social sciences. B) natural sciences. C) biological sciences. D) organizational sciences.
Why do free trade proponents dislike rules of origin in trade agreements?
A) It decreases the amount of international trade in the world. B) It increases the amount of international trade in the world. C) It decreases incentives for trade diversion. D) It increases incentives for trade deflection.