University:
Bradley University
Course:
ECO 199 | Foundational Topics in Economics
Academic year:

2023
Views:

421

Pages:

1
Author:

Alexa Livingston

True/False – Identify if the following statements are true (T) or false (F). False 1. In a monopoly, there are multiple producers selling identical products. 2. A monopolist must lower the price on all units in order to sell more units. True 3. Marginal revenue for a monopolist is always greater than the price of the product. False 4. A monopolist will produce where marginal revenue equals marginal cost. True 5. In the short run, monopolistically competitive firms can earn positive economic profits. True 6. Barriers to entry are a defining feature of monopolistic competition. False 7. Technological lock-in can contribute to the formation of a monopoly. True 8. A monopolistically competitive firm faces a perfectly elastic demand curve. False 9. The long-run economic profit of a monopolistically competitive firm is zero. True 10. Perfectly competitive firms are price takers, unlike monopolists who are price makers. True 11. Monopolistically competitive firms do not have to worry about brand identity. False 12. The demand curve for a monopolistically competitive firm is flatter than for a monopoly. True 13. Natural monopolies result from high fixed costs and economies of scale. True 14. A monopolist always earns positive profit regardless of costs and demand. False 15. The government may grant a firm monopoly rights if they produce an innovative product. The tool that does this is a patent. True