The formula for the simple deposit multiplier is

The above figure shows the payoff matrix facing an incumbent firm and a potential entrant. Assuming a fixed cost of entry, the incumbent will deter entry because

A) it is more profitable than accommodating entry. B) it increases consumer surplus. C) the potential entrant winds up with zero profit. D) the incumbent would earn zero profit if it accommodated entry.

The demand curve for the product of a monopolist is

a. a straight horizontal line. b. identical to the market demand curve. c. identical to its MR curve. d. below its MR curve.