"Monopolists do not worry about efficient production and cost saving since they can just pass along any increase in costs to their consumers." Is this statement true? Explain your answer
This statement is not true. An increased cost, leading to an increase in price, will mean fewer sales, and thus lower profit. Alternatively, by reducing costs, a monopolist could increase its profit.
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The U.S. has a system of private property rights that encourages productive uses of its resources even in the presence of some government influence
Indicate whether the statement is true or false
If the national output cannot be increased unless the productive capacity or potential GDP increases, the aggregate supply curve is:
a. downward-sloping. b. U-shaped. c. vertical. d. upward-sloping. e. horizontal.
The substitution effect of a price change ________ consistent with the Law of Demand.
A. is always B. is never C. is usually D. for inferior goods is not
When the price of hamburger went from $3 to $4 a pound, the quantity demanded of buns changed from 30 to 25 packages a day. The cross-price elasticity of demand for buns (using the initial value formula) is:
A. 1.4. B. 0.5. C. -0.5. D. -1.4.