Which of the following characteristics apply to both monopoly and monopolistic competition?

Which of the following characteristics apply to both monopoly and monopolistic competition?
 a. Marginal revenue exceeds marginal cost at equilibrium.
 b. Average revenue exceeds both marginal cost and marginal revenue at equilibrium.
  c. Marginal revenue exceeds average revenue at equilibrium.
 d. Marginal revenue and marginal cost are equal and exceed price at equilibrium.

QUESTION 2

Demand for U.S. dollars by speculators is likely to increase if the dollar is expected to depreciate in the near future.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 3

Under a _____, the assets of two firms that operate in the same market are put under a single ownership.
 a. vertical merger
  b. horizontal merger
  c. vertical acquisition
  d. horizontal acquisition

QUESTION 4

A monopolistic competitor is like a monopolist in that:
 a. it sells in the inelastic portion of its demand curve.
  b. it earns zero economic profit in the long run.
 c. the marginal revenue curve lies above the AR curve.
  d. it faces a downward-sloping demand curve.

QUESTION 5

Because of their greediness, speculators are considered bad for exchange-rate markets.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 6

In a market characterized by many sellers, if an outsider devises a way to reduce transaction costs it will:
 a. benefit both buyers and sellers.
  b. cause both buyers and sellers to lose.
  c. benefit the buyers but cause the sellers to lose.
  d. benefit the sellers but cause the buyers to lose.

QUESTION 7

Since a monopolistically competitive firm faces a ____ demand curve, it will always operate ____ in long-run equilibrium.
 a. perfectly elastic; with excess capacity
 b. downward-sloping; with excess capacity
 c. downward-sloping; at an economically efficient scale
  d. perfectly inelastic; at an economically efficient scale