Compare the market supply curves in a perfectly competitive market and a monopoly market
What will be an ideal response?
In a perfectly competitive market, the supply curve is the sum of all firms' supply curves. In a monopoly market, there is no supply curve. Supply is determined by how much the monopoly wants to produce given his marginal cost curve and the shape of the demand curve.
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Refer to the figure below. Moving from demand curve D1 to demand curve D2 illustrates a(n):
A. decrease in quantity demanded. B. increase in quantity demanded. C. increase in demand. D. decrease in demand.
Suppose that when price is $10, quantity supplied is 20 . When price is $6, quantity supplied is 12 units. The price elasticity of supply is:
a. 0.5. b. 0.8. c. 1.0. d. 1.5. e. 2.0.
Refer to the graph shown. An effective price ceiling at Pc causes producer surplus to:
A. fall from areas A + B + E to area A. B. fall from areas C + D + F to area D. C. change from areas C + D + F to areas B + C + D. D. change from areas A + B + E to areas A + B + C.
Which statement is true?
A. Price is calculated by dividing output by total revenue. B. The lowest point on the short-run supply curve is at the break-even point. C. When price exceeds marginal cost, a profit-maximizing firm will decrease production. D. The marginal cost curve intersects the average total cost curve at the break-even point.