Answer:
Monopoly is a market structure characterized by a single seller of a highly differentiated product. A monopolist sells a unique product. There is imperfect dissemination of information in this market structure. Unlike perfect competition there is barriers to entry and exit.
Since there is only one seller in the market, a monopolist can charge any prices for its products. That is why it is called as price maker.
Examples of monopoly markets includes public utilities like local telephone service, municipal bus companies, and gas, water and electric utilities, among others.
Answer:
If the demand for unskilled labor is inelastic, then an increase in the minimum wage will increase employment income for unskilled workers. Nowdays, with the demand of more part time jobs (like college students earning in various restaurants) there has been a reduction in the demand for unskilled labor. As cheap and more efficient workforce is available very easily. Thus, this instance is more likely and results in decline in income.
Answer:
(A) The answer is True.
The Justice Department concerns itself with significant or flagrant offenses under the Sherman Act, as well as with mergers for monopoly covered by Section 7 of the Clayton Act.
(B) The answer is False
When a single buyer and not the seller is confronted in a market by many smaller sellers, monopsony power enables the buyer to obtain lower prices than those that would prevail in a competitive markets.
(C) The answer is False.
A natural monopoly occurs when, Price =Marginal Cost ( MC ). It occurs at an output level where long-run average costs are declining.
(D) The answer is True
Downward sloping demand curves follow from the law of diminishing marginal utility and characterize both competitive markets.
(E) The answer is True
A decrease in the price elasticity of demand means less flexibility in changing products. Thus a monopolist can charge any prices for its product. This increases his monopoly power.