A monopoly exists when there is only one producer in an industry, and no close substitutes for the ...

A monopoly exists when there is only one producer in an industry, and no close substitutes for the product exist.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 2

The greater the differences in demand elasticities of consumers within a market, the more the monopolist benefits from charging a uniform price for his product.
  Indicate whether the statement is true or false

QUESTION 3

Which of the following will be the best example of a monopoly firm?
 a. The US Bank
  b. The Bank of America
  c. National City Bank
  d. The Federal Reserve
  e. Washington Mutual Funds Bank

QUESTION 4

Which of the following is true for a monopolist but not for a perfectly competitive firm?
 a. Marginal revenue is less than price.
 b. Economic profits could be earned in the long run.
 c. Profit maximization occurs at the output level where marginal revenue equals marginal cost.
  d. (a) and (b) are true for a monopolist but not for a perfectly competitive firm.

QUESTION 5

If the average costs of production decline with increases in output, then the larger a firm is, the lower its per unit costs will be.
 a. True
  b. False
  Indicate whether the statement is true or false