The demand curve of a monopolist is:
a. is identical to the marginal cost curve
b. downward sloping and above the marginal revenue curve.
c. downward sloping and below the marginal revenue curve.
d. kinked because of recognized interdependence with other firms.
b
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If a natural monopolist were to sell at the price where marginal cost equals demand, then it would be earning
a. zero economic profits, like a competitive firm in the long-run. b. negative profits and would not be able to survive. c. positive profits but not would not need to worry about government intervention to regulate it. d. positive profits but would still need to worry about possible government intervention to regulate it.
If the marginal cost of producing vanity license plates is virtually zero (by prison inmates with little else to do), then states would maximize their profits on plate sales at the point on a linear demand curve where
A. demand is inelastic. B. demand is elastic. C. demand is unit elastic. D. the demand curve crosses the horizontal axis.
The current price floor in the agricultural lettuce market makes it such that the price of lettuce is 25% higher than the equilibrium price and that 100 heads of lettuce are demanded
Assuming that the elasticity of demand for lettuce is -0.50, how much would revenue (P ? Q) change for the lettuce company if the government removed the current price floor? A) Revenue will increase by $15.60. B) Revenue will decrease by $15.60. C) Revenue will increase by $40.60. D) Revenue will increase by $ 9.40.
The prime rate
A) is charged by high quality corporations to each other. B) is charged by banks to each other. C) is charged by the Federal Reserve to member banks. D) is charged by banks to high quality corporations. E) fluctuates on a day-to-day basis as do other rates.