Which of the following statements is TRUE?
A) A monopoly cannot set price and quantity such that the point lies above the demand curve.
B) A monopoly can charge whatever it wants.
C) Profit maximization occurs by setting price first.
D) Both A and B.
A
You might also like to view...
The Bretton Woods system lasted from
A) 1801 to 1861. B) 1863 to 1914. C) 1945 to 1971. D) 1981 to 1993.
If the demand curve is horizontal, then demand is:
A. perfectly elastic. B. perfectly inelastic. C. unit elastic. D. elastic.
The income elasticity of demand for shoes is estimated to be 1.50. We can conclude that shoes:
A. have a relatively steep demand curve. B. have a relatively flat demand curve C. are a normal good. D. are an inferior good.
A monopoly cannot choose both price and quantity because ________
Fill in the blank(s) with the appropriate word(s).