Which of the following statements is true?
a. A firm that has monopoly power is a price maker
b. A firm that has monopoly power is a price taker.
c. A firm that has monopoly power earns exorbitant profits.
d. A firm that has monopoly power has a perfectly elastic demand curve.
e. A firm that has monopoly power has a perfectly inelastic demand curve.
a
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Interdependence among firms is characteristic of: a. perfectly competitive markets
b. monopoly markets. c. oligopoly markets. d. monopolistically competitive markets.
Improvements in and greater stocks of land, labor, capital, and entrepreneurial activity will shift the production possibilities curve: a. outward, such that more goods and services can be produced
b. outward, such that the cost-of-living rises. c. inward, such that the marketplace experiences a decrease in price and output levels. d. inward, because more resources will be used up and not renewed.