Which of the Following Best Approximates a Pure Monopoly

question 167

Multiple Choice

Which of the following best approximates a pure monopoly?

• A) the foreign exchange market
• B) the Kansas City wheat market
• C) the only grocery store in a small isolated town
• D) the soft drink market

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Definitions:

Shirking

Shirking describes when employees underperform or exert less effort than expected because of insufficient incentives or the absence of effective monitoring.

Perfectly Inelastic

Describes a situation where the quantity demanded or supplied does not change in response to a change in price; the demand or supply curve is vertical.

Labor Supply Curve

A visual diagram that illustrates the connection between the salary provided and the amount of work employees are ready to offer.

Competitive Firm

A company operating in a market where there are many buyers and sellers, and no single entity can influence the market price.