Which of the following is not true of monopolists?
a. The entry of new firms is not a major concern.
b. Monopolists seek to maximize profits.
c. Monopolists can charge any price they want and make a profit.
d. Monopolists can choose any point on the market demand curve.
e. Monopolists can raise price more than 10 percent.
C
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The real interest rate is given by:
A) the nominal interest rate adjusted for inflation. B) the nominal interest rate adjusted for changes in exchange rate. C) the nominal interest rate adjusted for income changes. D) the nominal interest rate adjusted for tax rates.
Lenders in the shadow banking system
A) are protected from loss by the FDIC. B) lack insurance to protect them from loss if the borrower becomes insolvent. C) are not subject to the bank runs or panics that can affect commercial banks. D) are protected by the Federal Reserve and the U.S. Treasury Department should they suffer losses due to bad investment decisions.