A monopoly:
A. is constantly threatened by the entry of new firms.
B. is constrained by demand.
C. is constrained because its decisions cannot affect market price.
D. faces a horizontal demand curve.
Answer: B
You might also like to view...
In order to make a rational choice, people must
A) decide quickly without wasting time. B) be able to afford the choice decided upon. C) determine what is in the social interest. D) only know what they want. E) compare marginal costs and marginal benefits.
Assume that the marginal propensity to consume equals 0.8, the income tax rate equals 0.3, and the marginal propensity to import equals 0.2. The marginal leakage rate is ________ and the size of the multiplier is ________
A) 0.70; 3.33 B) 0.60; 2.5 C) 0.64; 1.56 D) 0.50; 2.0
The successor organization to GATT, created in 1995, is the
A) WTO. B) EU. C) NAFTA. D) FDIC.
A reflationary (expansionist) policy:
a) Increases aggregate supply b) Increases aggregate demand c) Decreases the price level d) Increases full employment