Section 1
True/False
Monopolists have market power and do not have to live by the law of demand.
A worker who is the only one with a particular skill in her community has a monopoly over that skilled labour in her community.
The only seller of a product or service with no close substitutes is a price maker.
Sellers always prefer selling at higher prices.
Businesses prefer to have a monopoly over perfect competition.
Of all market structures, barriers to entry are highest for monopoly.
If McDonald's were to buy Wendy's, this would reduce McDonald's economies of scale.
The higher the market power, the lower the elasticity of demand.
In monopolistic competition there are many perfect substitutes.
Businesses in monopolistic competition have some pricing power.
The elasticity of demand is higher for oligopoly than for monopolistic competition.
The gaming hardware industry is an example of monopolistic competition.
Dreams of monopoly market power and profits generate competitive actions that produce outcomes resembling perfect competition.
Competition is about figuring out ways to match your rival suppliers in the market.
Every choice you make, every action you take happens in the context of a market.