Under which of the following scenarios is it most likely that monopoly power will be exhibited by firms?
A) When there are few firms in the market and the demand curve faced by each firm is relatively inelastic.
B) When there are many firms in the market and the demand curve faced by each firm is relatively inelastic.
C) When there are few firms in the market and the demand curve faced by each firm is relatively elastic.
D) When there are many firms in the market and the demand curve faced by each firm is relatively elastic.
A
You might also like to view...
Jamie has enough money to buy either a Mountain Dew, or a Pepsi, or a bag of chips. He chooses to buy the Mountain Dew. The opportunity cost of the Mountain Dew is
A) the Pepsi and the bag of chips. B) the Pepsi or the bag of chips, whichever the highest-valued alternative forgone. C) the Mountain Dew. D) the Pepsi because it is a drink, as is the Mountain Dew. E) zero because he enjoys the Mountain Dew.
How does marginal cost change as output increases (a) initially and (b) eventually?
What will be an ideal response?
Placing restrictions on business opportunities through government licensing and other controls
(a) is not allowed now and never has been in American history. (b) is not allowed now but was provided for by the Constitution and allowed until the 20th century. (c) is allowed now but was not allowed during the colonial period nor in the decades immediately following the establishment of the new nation. (d) has always been allowed in American history.
For the long run, neo-Keynesians believe that attempts to decrease the unemployment rate will
a. not succeed but will cause the rate of inflation to rise b. succeed but will also cause the rate of inflation to rise c. succeed and cause the rate of inflation to fall d. not succeed but will cause the rate of inflation to fall e. succeed but only at the expense of real GDP