A monopoly firm’s supply curve
A. has a supply curve identical to that for a perfectly competitive firm.
B. is always equal to marginal cost.
C. does not exist.
D. is determined by market demand.
Answer: C
You might also like to view...
Refer to Scenario 11.1. Suppose all five ranchers know that their land that Mariana needs is worth a total of $2 million. If each rancher agrees to sell his or her parcel of land to Mariana for $500,000, Mariana will purchase
A) all five parcels of land and the railway will be built. B) all five parcels of land but the railway will not be built. C) only four parcels of land and the railway will be built. D) no parcels of land and the railway will not be built.
A monopolist sells 100 units at $10 per unit and 90 units at $15 per unit. The marginal revenue from the tenth unit is
A) $1000. B) $1350. C) $100. D) $350.
With a constant opportunity cost between goods A and B, the PPF for goods A and B would
A) be a straight line. B) be a bowed-outward line. C) be a bowed-inward line. D) not exist.
If the price of a good decreases while the quantity of the good exchanged on markets increases, then the most likely explanation is that there has been
a. a decrease in supply. b. an increase in supply. c. a decrease in demand. d. an increase in demand.