The monopolist faces:
a. a perfectly inelastic demand curve.
b. a perfectly elastic demand curve.
c. the entire market demand curve.
d. all of these.
c
You might also like to view...
With asymmetric information among consumers and positive search costs, a firm may
A) raise its price above the monopoly price. B) price at the monopoly level. C) price at the competitive level. D) None of the above.
According to the marginal approach to profit maximization,
a. firms should equate total revenue and marginal cost when choosing the optimal output level b. firms should take any action that increases revenue more than costs c. economic profit is zero in the long run d. marginal cost declines until it reaches marginal revenue at the profit-maximizing output level e. marginal costs eventually diminish as more output is produced
Suppose a firm has a monopoly on the sale of widgets and faces a downward-sloping demand curve. When selling the 100th widget, the firm will always receive
a. less marginal revenue on the 100th widget than it received on the 99th widget. b. more average revenue on the 100th widget than it received on the 99th widget. c. more total revenue on the 100 widgets than it received on the first 99 widgets. d. a lower average cost per unit at 100 units of output than at 99 units of output.
Summarize examples of how a change in demand for one good can affect demand for a related good?