Question

30. Which of the following is NOT a barrier to entry into a monopoly market?

Multiple Choice
A. the existence of substitute goods
B. the exclusive right to produce a good
C. a patent on important technology
D. legal action against new firms that enter the market

31.The market supply of labor
Multiple Choice
A.shifts to the right when more workers enter the labor market.
B.refers to the amount of labor businesses hire at various wages.
C.is a horizontal line.
D.shifts to the right when wages decrease.

33. The demand for labor is dependent on the demand for the final product or service. True or False?

34. Which of the following is true for a monopoly?
Multiple Choice

A.The total revenue curve indicates the highest price consumers are willing to pay for the rate of output.
B.Several different prices are compatible with the profit-maximizing rate of output.
C.The intersection of total revenue and total cost establishes the profit-maximizing rate of output.
D.The demand curve indicates the highest price consumers are willing to pay for the rate of output.

Answer 1

Answer 30. A. the existence of substitute goods.

reason- Barriers to entry into a monopoly market means it is difficult for new firms to enter the market, this happena due to Exclusive rights, patents, and legal action. Substitute goods dont affect the barriers to entry.

Answer 31. A.shifts to the right when more workers enter the labor market.

reason- When number of workers increases, labor supply increases. So labor supply curve shifts to the right.

Answer 33. Derived demand

reason- Labor demand depends on the demand for the good the labor produces, so it is also called derived demand.

Answer 34. The demand curve indicates the highest price consumers are willing to pay for the rate of output.

reason- Monopolist had Downward sloping demand curve. so it indicates the highest level of price that the consumer will be willing to pay for a rate of output.