Compared to perfectly competitive firms, the demand curve for a monopolist will be
A. as elastic.
B. less elastic.
C. perfectly elastic.
D. more elastic.
Answer: B
You might also like to view...
Government restrictions on the use of an open-access resource
a. may improve efficiency b. will decrease efficiency c. are unnecessary d. contribute to pollution of the resource e. contribute to depletion of the resource
If perfectly competitive industry B is currently realizing economic profits, we would expect that:
a. industry output will fall, good B will fall in price, and economic profits will tend to disappear. b. industry output will fall, good B will rise in price, and economic profits will tend to disappear. c. industry output will rise, good B will fall in price, and economic profits will tend to disappear. d. industry output will rise, good B will fall in price, and economic profits will tend to increase.
A perfectly contestable market is one which a firm can enter and exit without losing its investment
a. True b. False Indicate whether the statement is true or false
Consider an industry with two firms producing similar products. Each firm's total cost (in dollars) is given below.Acme Manufacturing: TC = 100 + 3Q Generic Industries: TC = 500 + 3Q Suppose that Acme and Generic face the same demand curve. If each firm produces its profit-maximizing level of output and earns a positive economic profit, then which of the following statements is true?
A. Generic will produce more output than Acme. B. Acme and Generic will produce the same quantity, but Acme will have higher profits. C. Acme will produce more output than Generic. D. Acme and Generic will produce the same quantity and will have the same profits.