The figure given below shows the aggregate demand and supply curves of a perfectly competitive market.Figure 10.7

-Which of the following will be the best example of a monopoly firm?
A)The US Bank
B)The Bank of America
C)National City Bank
D)The Federal Reserve
E)Washington Mutual Funds Bank

Question

The figure given below shows the aggregate demand and supply curves of a perfectly competitive market.Figure 10.7
 
-Which of the following will be the best example of a monopoly firm?
A)The US Bank 
B)The Bank of America 
C)National City Bank 
D)The Federal Reserve 
E)Washington Mutual Funds Bank

Quizplus · Accepted Answer

The Federal Reserve is the best example of a monopoly firm because it is the only central bank of the United States and has the exclusive power to control the money supply and interest rates. Other choices are commercial banks that operate in a competitive market.

The Figure Given Below Shows the Aggregate Demand and Supply