Compared with a competitive market with the same cost and market demand circumstances, a monopolist has
A. More pressure to reduce costs and more reason to improve quality.
B. Less pressure to reduce costs and more reason to improve quality.
C. Less pressure to reduce costs and less reason to improve quality.
D. More pressure to reduce costs and less reason to improve quality.
Answer: C
You might also like to view...
Movements of ________ interest rates indicate that, contrary to the early Keynesians' beliefs, monetary policy was ________ during the Great Depression
A) nominal; tight B) nominal; easy C) real; tight D) real; easy
If the Federal Reserve reduces the federal funds rate,
A. other interest rates, such as home mortgage rates, will rise to compensate. B. long-term interest rates will react more than short-term rates. C. the quantity of funds borrowed and lent will decrease. D. inflation is more likely to occur.
Fractional reserve banking refers to a system where banks
A. deposit a fraction of their reserves at the central bank. B. accept a portion of their deposits in checkable accounts. C. grant loans to their borrowing customers. D. hold only a fraction of their deposits in their reserves.
Assume Robbie's Robots operates in a perfectly competitive market producing 3,000 robots per day. At this output level, the selling price is $800 per robot and the marginal cost is $625 per robot. To maximize profits, Robbie's Robots should
A. make no adjustments as they are already maximizing their profits. B. increase their output. C. decrease their output. D. stop producing since it is earning a loss.