With respect to the pure monopolist's demand curve, it can be said that:
A. the stronger the barriers to entry, the more elastic is the monopolist's demand curve.
B. price exceeds marginal revenue at all outputs greater than 1.
C. demand is perfectly inelastic.
D. marginal revenue equals price at all outputs.
Answer: B
You might also like to view...
An unexpected increase in the price level that temporarily lowers real wages and induces more employment and output in an economy, occurs in
a. nominal-supply theory. b. stagflation. c. misperceptions theory. d. sticky-wage theory.
Minimum wage
What will be an ideal response?
The two topics of primary concern in macroeconomics are:
A. short-run fluctuations in output and employment and long-run economic growth. B. unemployment and wage rates in labor markets. C. monopoly power of corporations and small business profitability. D. oil prices and housing markets.
Which of the following is FALSE regarding bilateral monopoly?
A. The price outcome is easily determined. B. Bilateral monopoly is defined as a market structure in which a single buyer faces a single seller. C. An example of bilateral monopoly is a state education employer facing a single teachers' union in the labor market. D. Bilateral monopoly is a market structure consisting of a monopolist and a monopsonist.