Question

Choose the best answer.

1.    If a firm sells its output on a market that is characterized by many sellers and buyers, a differentiated product, and unlimited long-run resource mobility, then the firm is

      a. a monopolist.       b. an oligopolist.     c. a perfect competitor.

      d. a monopolistic competitor.

2.    A natural monopolyrefers to a monopoly that is defended from direct competition by

 a. economies of scale over a broad range of output.   

 b. a government franchise.

 c. control over a vital input.

          d. a patent or copyright.

·       . The short run is the time period in which the level of output is fixed. True or False?

 

 

Answer 1

1 ) a. Monopolist

2) a. economies of scale over a broad range of output.  

3 . True