question 12\n1 pts\na monopoly firm is the only seller of a good or service that\n○ has a perfectly elastic…

question 12\n1 pts\na monopoly firm is the only seller of a good or service that\n○ has a perfectly elastic demand.\n○ does not need to be advertised.\n○ does not have a close substitute.\n○ has no close complements.\nquestion 13\n1 pts\ncollusion is\n○ common among monopoly firms.\n○ necessary for firms to raise money by borrowing from investors or from banks in order to fund research and development required to develop new products.\n○ legal under u.s. antitrust laws if the intent is to increase competition.\n○ an agreement among firms to charge the same price or otherwise not to compete.

question 12\n1 pts\na monopoly firm is the only seller of a good or service that\n○ has a perfectly elastic demand.\n○ does not need to be advertised.\n○ does not have a close substitute.\n○ has no close complements.\nquestion 13\n1 pts\ncollusion is\n○ common among monopoly firms.\n○ necessary for firms to raise money by borrowing from investors or from banks in order to fund research and development required to develop new products.\n○ legal under u.s. antitrust laws if the intent is to increase competition.\n○ an agreement among firms to charge the same price or otherwise not to compete.

Answer

Brief Explanations:

For Question 12: A monopoly firm has market power because it is the sole seller of a good or service with no close substitutes. Goods with perfectly elastic demand are not characteristic of monopolies. Monopoly firms may still advertise to maintain or increase their market power. Close complements are not relevant to the definition of a monopoly. For Question 13: Collusion is an agreement among firms (usually in an oligopoly - though can be attempted in other market structures too) to limit competition, often by setting the same price or other anti - competitive practices. It is not common among monopoly firms as there is no other firm to collude with. It is illegal under U.S. antitrust laws as it reduces competition, and it has nothing to do with firms raising money for R&D.

Answer:

Question 12: does not have a close substitute Question 13: an agreement among firms to charge the same price or otherwise not to compete