Economies of scale, control over a scarce input, and patents are all examples of barriers to entry. ...

Economies of scale, control over a scarce input, and patents are all examples of barriers to entry.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 2

By differentiating their products and promoting brand name loyalty, monopolistically competitive firms can raise prices without losing all their customers.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 3

When the exchange rate fluctuates around a fixed central target, allowing for a moderate amount of fluctuation, while tying the currency to the target central rate, the exchange rate is under a(n):
 a. horizontal band.
  b. crawling peg.
  c. managed float.
  d. independent float.
  e. currency board.

QUESTION 4

The smaller the share of the fringe firms in an oligopoly market, the smaller will be the profit earned by the dominant firm.
  Indicate whether the statement is true or false

QUESTION 5

A monopoly is a market model in which just one firm sells a product with no close substitutes.
 a. True
  b. False
  Indicate whether the statement is true or false