In principle, can a monopolist hold its monopoly power in the long run? Explain
What will be an ideal response?
Yes. Monopoly power exists in the long run when the market is closed to entry in some way. Barriers to entry include ownership to resources without close substitutes, economies of scale, government restrictions, licenses and patents, and regulations.
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If an exporter wants to limit the effect of possible changes in the exchange rate on the value of her exports, then she can adopt a strategy known as
A) floating. B) speculating. C) hedging. D) appreciating.
"If a union is only able to organize a few of the firms in an industry, it is unlikely that the union can substantially increase the wages of its members." This statement is
a. false; unions tend to be stronger when they concentrate on only a few producers in an industry. b. false; the demand for unionized workers will be more inelastic if only a few firms in the industry are unionized. c. false; all unions can increase the wages of their members. d. essentially correct.