1.) Which of the following is not a characteristic of a? monopoly? A.) A product
ID: 1164427 • Letter: 1
Question
1.) Which of the following is not a characteristic of a? monopoly?
A.) A product with no close substitutes.
B.) Free entry and exit
C.) A single firm in the market.
D.) Barriers to entry
2.) For a monopolistic? competitor, short-run profits will tend to? ________ in the long run and? short-run losses will tend to?________ in the long run.
A.) grow; shrink
B.) grow; grow
C.) disappear; disappear
D.) remain steady; remain steady
3.) The more it costs to enter a monopolistically competitive? market, the more a firm currently in that market must worry about losing business.
A.) True
B.) False
Explanation / Answer
a) "B"
Free entry and exit are not characteristics of a monopoly. It is protected by some law or source of raw material, knowledge which prevents other firms to enter the market.
b) "D"
For a monopoly, the profit and losses will remain the way it is.
c) "True"
Higher the cost the more the firm will worry if they lost the business.
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