A monopolist would charge ____ prices and produce ____ output than would exist under perfect competition.
a. higher; less
b. lower; more.
c. higher; more.
d. the same; the same.
a
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The probably effect of introducing an increased number of automatic teller machines is to
A) increase money demand, shifting the LM curve up and to the left. B) increase money demand, shifting the LM curve down and to the right. C) decrease money demand, shifting the LM curve up and to the left. D) decrease money demand, shifting the LM curve down and to the right.
Why do economists tend to create models in diagrammatic form?
a. Diagrams hide reality, and theory is an attempt to avoid reality. b. It is easier than building models out of physical objects. c. Economic reality cannot possibly be represented except in diagrams. d. Most economists are frustrated artists, and like to draw when possible. e. All of the above are correct.
The short-run supply curve for a firm in a perfectly competitive market is
a. horizontal. b. likely to slope downward. c. determined by forces external to the firm. d. the portion of its marginal cost curve that lies above its average variable cost.
Because majority voting fails to incorporate the strength of the preferences of individual voters, it:
A. creates negative externalities. B. under some circumstances produces economically inefficient outcomes. C. leads to market failure. D. leads to politics dominated by special interest groups.