Economics of Enterprise Answers

1.8 Which one of the following is NOT true of a monopolist? (a) A monopolist is protected from competition, (b) A monopolist can earn economic profit, (c) A monopolist is a price maker, (d) A monopolist can sell as much as he/she wants to at any price

1.5 If the cross elasticity of demand between tablets and smart phones is 2.0 this implies that these goods are ; (a) Luxuries, (b) Complements, (c) Necessities, (d) Substitutes. Which one is True?

If there is an increase in the price of red meat, a substitute in production for milk, then (a) Supply of milk will increase
(b) Demand for milk will decrease
(c) Supply of milk will decrease
(d) There will be a movement along the supply curve for milk

In each of the following cases only one answer is correct
1.2 If we were to say that two variables are positively related, this means that: a) The relationship between the two would graph as a line sloping downward. b) The relationship between the two would graph as a horizontal line. c) The relationship between the two would graph as a line sloping upward. d) The relationship between the two cannot be depicted graphically in any simple way.
1.3 If there is an increase in the price of red meat, a substitute in production for milk, then: a) The supply of milk will increase. b) The demand for milk will decrease. c) The supply of milk will decrease. d) There will be a movement along the supply curve for milk.

if there is an increase in the price of red meat, a substitute in production for milk, then what will happen to the supply?

Lonewolf Ltd is the sole manufacturer and supplier of solar panels in the country. As a result of this the CEO claimed in a recent meeting that he can set any price he wishes and sell as many units of his product as he wants at that price

• What strategies helped Pleiman become a successful entrepreneur?

The​ free-rider problem arises when an individual​ ____________.

If there is an increase in the price of red meat, a substitute in production for milk, then:
a) The supply of milk will increase.
b) The demand for milk will decrease.
c) The supply of milk will decrease.
d) There will be a movement along the supply curve for milk.