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Which would be definingcharacteristics of pure monopoly? 1. The firm does not ad

ID: 1239622 • Letter: W

Question

Which would be definingcharacteristics of pure monopoly?
1. The firm does not advertise and it sells a standardizedproduct.
2. No close substitutes for the product exist and there is oneseller.
3. The firm can easily enter into or exit from the industryand profits are guaranteed.
4. The firm holds a patent and is technologicallyprogressive.

The Town of Bedford Fallswants to buy four new police cars. The opportunity cost of
buying the police cars is the:

1. Cost of buying thecars now vs. buying them later.
2. Ability to make more arrests and reduce the total annualcrime rate.
3. Other desirable goods or services that must be given up tobuy the cars.
4. Dollar cost of the new cars.

Who were the classicaleconomists?

A leakage or withdrawal isany use of the income received by households that does notreturn
as revenue to domestic firms.
1. True
2. False


The aggregate supply curve is the relationship betweenthe:

1. Price level andthe real domestic output purchased.
2. Price level and the real domestic output produced.


3.Price level which producers are willing to accept and the pricelevel purchasers are
willing to pay.

4.Real domestic output purchased and the real domestic outputproduced.

Which of the following ischaracteristic of a product whose demand is elastic?
1. The price elasticity coefficient is less than 1.
2. Total revenue decreases if price decreases.
3. Buyers are relatively insensitive to price changes.
4. The percentage change in quantity is greater than thepercentage change in price.

Explanation / Answer

Which would be definingcharacteristics of pure monopoly?

2. No close substitutes for the product exist and there is oneseller.
3. The firm can easily enter into or exit from the industryand profits are guaranteed.

The Town of Bedford Fallswants to buy four new police cars. The opportunity cost of
buying the police cars is the:


3. Other desirable goods or services that must be given up tobuy the cars.

Who were the classicaleconomists?

A leakage or withdrawal isany use of the income received by households that does notreturn
as revenue to domestic firms.
1. True
2. False


The aggregate supply curve is the relationship betweenthe:


2. Price level and the real domestic output produced.


3.Price level which producers are willing to accept and the pricelevel purchasers are
willing to pay.

Equilibrium