"Being the only seller in the market, the monopolist can choose any price and quantity it desires." Evaluate this statement: Is it true or false? Explain your answer
What will be an ideal response?
The statement is false. The monopolist cannot choose both the price and quantity. The monopolist has some market power and therefore has some ability to affect market price but it does not control the demand curve. If the monopolist sets a price, the quantity sold will be indicated by the demand curve.
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In a Betrand price-setting duopoly model, the equilibrium output:
a. will be equal to the monopoly output. b. will be equal to the competitive market output. c. will lie between the monopoly and the competitive market output. d. will be higher than the monopoly output.
The formation of which of these groups was closely linked to U.S. activities in the Middle East during and after the Persian Gulf War?
a. Wahhabi b. ETA c al-Qaeda d. New Dawn out of
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A. the community college system. B. the growth of Social Security. C. the growth of Medicare and Medicaid. D. the reduction in the inflation rate.
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A) a reduction in demand B) a reduction in supply C) an increase in quantity demanded D) an increase in quantity supplied