Question

4. One of the most significant disadvantages of a monopoly is:

a. oligarch capitalization

b. no competition from international markets

c. price wars

d. high prices charged

5. D Ram prices in the U.S. were _____ in Dec-01

a. close to $1

b. better than those in potato sales

c. not comparable to those of Vietnamese markets

d. fixed

6. Pressure, rationalization, and opportunity help indicate issues that lead to:

a. NYPD law investigation

b. forensic dissecting of butterflies

c. price fixing

d. background checks

Answer 1

1> d. high prices charged

In case of a monopoly, there is no competition between the firms, so thus the market power lies in the hand of one player and they charge higher price to have a greater profit.

2> a. close to $1

Dynamic RAM price has gradually fallen over the years and in Dec 01 the price was around $1 in the US.

3> a. NYPD law investigation

Pressure, rationalization, and opportunity are part of the fraud triangle. These 3 elements are generally present in any fraud case, thus in NYPD law investigation, these 3 were often used for fraud detection.