What does the demand curve facing a monopoly look like? Why?
What will be an ideal response?
The demand curve facing a monopoly is downward sloping because the monopoly is the industry. Therefore, it faces the industry demand curve, which is downward sloping. For a monopolist to sell more units, it must lower price.
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Refer to the scenario above. Suppose the amount that you receive, on winning the bet, is increased to $300. Which of the following statements is true?
A) There is no change in the outcome of the game. B) Your expected value of the bet will be positive. C) You will withdraw from the bet as the cost of betting increases. D) The probability of you winning the game increases to 2/100.
The number of hours that a worker is willing to work is determined by the trade-off between the increasing
A. Total utility of leisure and the decreasing total utility of income. B. Value of leisure time and the decreasing marginal utility of income. C. Marginal utility of both income and leisure. D. Total utility of income and the decreasing marginal utility of leisure.
What would be the most likely reason for a government to introduce a tax decrease?
a. impeding a monopoly b. reducing unemployment c. lowering interest rates d. overcoming inflation
Fluctuations in velocity tend to increase when measured using M1 instead of M2.
Answer the following statement true (T) or false (F)