Identify the characteristics of a monopoly firm.

Identify the characteristics of a monopoly firm.
 a. The existence of barriers to entry and production of a homogeneous product
  b. The production of a unique product and a large number of sellers in the market
  c. The production of a standardized product and the firm is a price taker
  d. The existence of barriers to entry and the firm is a price taker
  e. The existence of barriers to entry and the firm is a price maker

QUESTION 2

In the short run, a perfectly competitive firm can earn:
 a. positive economic profits.
  b. zero economic profits.
 c. negative economic profits.
  d. any of the above.

QUESTION 3

The welfare programs undertaken by the U.S. government have been universally successful in reducing poverty and fostering economic growth.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 4

The market-clearing price is:
 a. the price at which the market is in equilibrium.
  b. the price at which mutually beneficial trade take place.
  c. the price at which sellers earn the maximum profit.
  d. the price at which consumer surplus is zero.

QUESTION 5

The only decision that a perfectly competitive firm makes is:
 a. what price to charge.
  b. what quantity to produce.
  c. how much to spend on advertisements.
  d. how much to discriminate on the basis of price.
  e. how to differentiate its products from its rivals.

QUESTION 6

Assume a perfectly competitive firm sells its output for 150 per unit. It currently produces 6,000 units of output, at which output level it minimizes its average variable cost at 152 per unit. Assuming it wants to maximize its profits, it should:
 a. increase output.
 b. decrease output, but not shut down.
  c. maintain its current output rate.
 d. shut down.

QUESTION 7

The income tax structure in the United States is regressive in nature.
 a. True
  b. False
  Indicate whether the statement is true or false