Which of the following explains why monopoly is uncommon in the real world?
a. firms usually face downward-sloping demand curves.
b. supply curves slope upward.
c. price is usually set equal to marginal cost by firms.
d. there are reasonable substitutes for most goods.
D
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One way a monopoly can convert additional consumer surplus into economic profit is to
A) lower prices. B) raise prices. C) price discriminate. D) become more competitive. E) produce where price equals average total cost.
The figure above provides information about Light-U-Up Utilities, which is a natural monopoly that provides electricity. At the unregulated price and quantity, Light-U-Up's economic profit is equal to
A) -$10. B) $10. C) $40. D) $60.
A direct restriction on the quantity of an import is called a(n):
A) quota. B) tariff. C) import subsidy. D) import restriction.
The introduction of the power loom during the Industrial Revolution caused:
A. the long-run aggregate supply curve to shift to the right. B. an increase in the potential output of the economy. C. economic growth. D. All of these are true.