Question

question 36. How does the ratio of CEO pay in the U.S. compare with that ratio in Japan?

a	It is much lower.

b	It is slightly lower.

c	It is slightly higher.

d	It is much higher.

question 37. Which of the following is NOT a characteristic of a monopoly?

a	A great deal of political power

b	No close substitute products

c	The ability to make an economic profit in the long run

d

Operating at the lowest point on the ATC curve

question 48. Which of the following would not be a monopolistic competitor?

a	Mother's café

b	Mr. Nice Guy's rent-a-tuxedo

c	Andy's magic shop

d

International Business Machines

Question 57. The most important fact about an oligopolized industry is that

a	there are several very large firms.

b	there are a few firms.

c	the firms produce a differentiated product.

d	the firms produce an identical product.

Answer 1

Ans:

36) Option D

it is much higher

The average salary of CEO in large U.S. companies is $12 million and the average salary of CEO in large Japanese company is $2.5 million.It means the ratio of CEO pay in the U.S. compare with that ratio in Japan is much higher.

37) Option D

Operating at the lowest point on the ATC curve

The characteristics of a monopoly include single seller,barriers to entry, no close substitute products and price maker.As there is no competition, monopoly as the ability to make an economic profit in the long run. However, the monopoly does not operates at the minimum point of average total cost curve.