Monopoly firms manage to earn positive profits, even in the long run because
a. they have no close substitutes
b. there are high barriers of entry to the market
c. they have a cost advantage difficult to duplicate
d. all of the above
d
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The rationality assumption states that
A) all actions taken by consumers are based on what is good for society. B) people make decisions regardless of how the outcome will affect them. C) people make decisions to buy only those goods that they need rather than goods that they want. D) people do not intentionally make decisions that would leave them worse off.
If interest rates fall,
A. the demand curve for loans will shift out. B. the discounted value now of money to be received in the future will fall. C. some previously unprofitable prospective investments will become profitable. D. the supply curve for loanable funds will shift in.