Which of the following statements about the elasticity of demand for a monopolist is TRUE?
A) Since a monopolist produces a good with no close substitutes, the price elasticity of demand for the good is zero.
B) A monopolist produces a good with demand that is perfectly inelastic because people can not do without the good.
C) Since every good has some substitute, even if imperfect, the demand for a good produced by a monopolist will not have zero price elasticity.
D) Since the demand curve of a monopolist is downward sloping, the demand for the good must be inelastic.
C
You might also like to view...
From the late 1940s until the creation of the WTO, the organization that was primarily responsible for conducting rounds of trade negotiations was the
A) World Bank. B) IMF. C) ITO. D) United Nations. E) GATT.
A union may negotiate limits on workload in order to increase the demand for labor and raise workers' salaries. This practice is known as:
a. featherbedding. b. human capital formation. c. monopsonistic bargaining. d. artificial demand stimulus.
Entrepreneurship is: a. human capital
b. another word for the financial capital that can be used to start a business. c. the resource that organizes the other factors of production in order to produce goods and/or services. d. another word for physical capital that is used to produce goods and services.
The money supply will grow even larger through deposit creation when
A. People decide to use cash instead of checks for transactions. B. Interest rates rise, causing people to move money out of banks and into bonds. C. Banks stop making new loans because they are too risky. D. Consumers, businesses, and government increasing their borrowing.