Other things being equal, if a once-competitive firm attains a high degree of monopoly power in its product market, then its resource demand will:
A. Become perfectly inelastic
B. Remain perfectly elastic
C. Become more elastic
D. Become more inelastic
D. Become more inelastic
You might also like to view...
According to the factor price equalization theorem, free international trade will result in wages equating rents worldwide
Indicate whether the statement is true or false
Which of the following best describes total fixed cost? a. The change in total cost when one additional unit of output is produced. b. Total cost divided by the quantity of output produced
c. Total variable cost divided by the quantity of output produced. d. Total fixed cost divided by the quantity of output produced. e. Costs that do not vary as output varies.
An unexpected discovery of a new mineral deposit will cause the
A. demand curve to shift outward. B. demand curve to shift inward. C. supply curve to shift outward. D. supply curve to shift inward.
George Gnat subscribes to a monthly pest control service for his home. Last week, the owner of the service informed George that he will have to raise his monthly service fee because of increases in the price of gasoline used by his workers on their
service trips. How is the market for pest control services affected by this? A) There is an increase in the supply of pest control services. B) There is a decrease in the demand for pest control services. C) There is a decrease in the quantity of pest control services supplied. D) There is a decrease in the supply of pest control services.