When a domestic monopolist becomes subject to international competition, it faces:
a. a perfectly inelastic demand curve.
b. a unitary elastic demand curve.
c. a perfectly elastic demand curve.
d. no demand curve.
Ans: c. a perfectly elastic demand curve.
You might also like to view...
Points on the same utility curve are
A. points where the person is indifferent between bundles on the line. B. points where utility is maximized. C. never possible. D. known as "points of light."
What is the amount that individuals would have been willing to pay, minus the amount that they actually paid?
a. efficiency b. consumer surplus c. social surplus d. deadweight loss
On Saturdays, Stan goes to the park to play his saxophone. Some of the people in the park love listening to Stan play, while others find his music really annoying. In this case, Stan's saxophone playing generates:
A. a positive externality. B. both positive and negative externalities. C. a negative externality. D. neither a positive nor a negative externality.
An increase in the federal funds rate could be caused by:
A. an open market purchase of government securities. B. an increase in the excess reserves of the banking system. C. an increase in the reserve requirement. D. a cut in the discount rate.