Question

In: Economics

Which of the following is not an assumption of the theory of monopoly? Group of answer...

Which of the following is not an assumption of the theory of monopoly?

Group of answer choices

There is one seller.

The firm experiences economies of scale.

There are extremely high barriers.

The single seller sells a product for which there are many close substitutes.

Solutions

Expert Solution

Answer: The single seller sells a product for which there are many too close substitutes

Explanation: Monopolies will not have any close substitute product and there are high barriers for entry to the market. There will be a single seller and is protected by the patent. Economies of scale occurs in the firm because as the demand increases, production increases and the firm uses the entire capacity to reach economies of scale.

Rahul Sunny answered 2 years ago
Next > < Previous

Related Solutions

Which of the following is a characteristic of both monopolistic competition and monopoly? Group of answer...
Which of the following is a characteristic of both monopolistic competition and monopoly? Group of answer choices i. Firms face significant barriers to entry. ii. A firm's marginal revenue curve is below its demand curve. iii.In the long run, a firm will earn zero economic profit. iv In the long run, a firm will produce a level of output that corresponds to the minimum point of its average total cost curve.
34. Which of the following describes a monopoly? Group of answer choices any market in which...
34. Which of the following describes a monopoly? Group of answer choices any market in which the demand curve to the firm is downsloping. a standardized product being produced by many firms. a single firm producing a product for which there are no close substitutes. a large number of firms producing a differentiated product. 35. Which of the following is true for the marginal revenue curve of a monopolist? Group of answer choices is a straight, upsloping curve. rises at...
34. Which of the following describes a monopoly? Group of answer choices any market in which...
34. Which of the following describes a monopoly? Group of answer choices any market in which the demand curve to the firm is downsloping. a standardized product being produced by many firms. a single firm producing a product for which there are no close substitutes. a large number of firms producing a differentiated product. 35. Which of the following is true for the marginal revenue curve of a monopolist? Group of answer choices is a straight, upsloping curve. rises at...
Which of the following statements is correct? Group of answer choices The dividend theory espoused by...
Which of the following statements is correct? Group of answer choices The dividend theory espoused by Modigliani and Miller would say that firms would be better served with a constant pattern of growing dividends. The tax differential dividend theory by Litzenberger and Ramaswamy, would say that firms will be better off to pay a higher amount of dividends because the lower tax rates associated with dividends as compared to capital gains. The bird-in-the-hand theory would say that a higher dividend...
Which of the following is not an assumption of the one-way ANOVA? A. Group means are...
Which of the following is not an assumption of the one-way ANOVA? A. Group means are equal B. Group variances are equal C. data between and within groups are independent D. Observations are normally distributed within groups.
Which of the following circumstances illustrates the aggregate theory of partnership law? Group of answer choices...
Which of the following circumstances illustrates the aggregate theory of partnership law? Group of answer choices A lawsuit being required to name the partners individually as defendants The partnership going through a dissociation upon the death of a partner The partnership filing for bankruptcy The partnership being allowed to hold property in its own name None of the above circumstances illustrates the aggregate theory.
1)Which of the following best describes the condition that leads to a natural monopoly? Group of...
1)Which of the following best describes the condition that leads to a natural monopoly? Group of answer choices a)A single firm controls an industry because there are very few customers in the industry. b)The government prohibits entry into an industry. c)The firm takes anti-competitive actions to keep other firms out. d)Economies of scale are large relative to quantity demanded in a market.
For a pure monopoly to exist there is/are: Group of answer choices limited sellers in a...
For a pure monopoly to exist there is/are: Group of answer choices limited sellers in a particular industry. only one seller, therefore no industry. a few sellers in a given industry. a single seller in a particular industry.
All of the following are pros of outsourcing except which of the following? Group of answer...
All of the following are pros of outsourcing except which of the following? Group of answer choices Creates booking leverage Reduces stress, time, and budget implications Short-term cost cutting could lead to long-term damage Facility staff focuses on core competencies leading to professional growth
Which of the following is not a limitation of the proprietorship: Group of answer choices unlimited...
Which of the following is not a limitation of the proprietorship: Group of answer choices unlimited personal liability limited life difficult ownership transfer difficult to obtain large sums of capital subject to few government regulations
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT