A monopoly differs from monopolistic competition in that
A) a monopoly has market power while a firm in monopolistic competition does not have any market power.
B) a monopoly can never make a loss but a firm in monopolistic competition can.
C) a monopoly faces a perfectly inelastic demand curve while a monopolistic competitor faces an elastic demand curve.
D) in a monopoly there are significant entry barriers but there are low barriers to entry in a monopolistically competitive market structure.
D
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A trend is a general tendency for a variable to increase or decrease over time
Indicate whether the statement is true or false
If the market interest rate is 5% and a bank advertises loans at 12%, the bank will receive
A) no applications. B) applications from mostly low-risk borrowers. C) applications from mostly high-risk borrowers. D) a moral hazard.