Which of the following statements about a monopoly is FALSE?
A) Monopolies have no barriers to entry or exit.
B) The good produced by a monopoly has no close substitutes.
C) A monopoly is the only producer of the good.
D) None of the above; that is, all of the above answers are true statements about a monopoly.
A
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According to the text, a government policy of promoting competition must
A) assure small businesses they won't fail because of below-cost pricing or other predatory practices by larger businesses. B) assure small businesses they won't fail under any circumstances. C) equate profit margins among competing suppliers. D) maintain a process rather than some state of affairs. E) work toward making sellers' demand curves completely elastic.
If Q is total real output, K is capital in use, L is labor employed, an increase in the productivity of labor would imply a(n): a. increase in K/L
b. increase in L/K. c. increase in Q/L. d. decrease in Q/K. e. decrease in (Q + K)/L.