Which of the following statements is correct?
A) Monopolies are guaranteed to earn an economic profit.
B) The market demand and the firm's demand are the same for a monopoly.
C) Monopolies have perfectly inelastic demand for the product sold.
D) Because a monopoly is the only firm in the market, its supply curve is the same as the market demand curve.
E) Because a monopoly is the only firm in the market, its marginal revenue curve must be the same as the market demand curve.
B
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Price ceilings generally do not lead to which of the following?
A. Persistent shortages B. A reduction in the quality of the good C. An increase in the number of units purchased D. The development of black markets
Which average cost curves are U-shaped?
What will be an ideal response?
_____ a cornerstone of the market economy
a. Mutually beneficial exchange is b. A strong central bank c. Monopoly rents are d. Government regulation is
The relationship between the wage rate and the quantity of labor that employers wish to hire in total is called: a. the market supply curve for labor
b. the market demand curve for labor. c. an individual demand curve for labor. d. an individual supply curve for labor.