Depending on the shape of the marginal cost curve, a monopolist might produce an output level on the elastic or the inelastic part of demand.
Answer the following statement true (T) or false (F)
False
Rationale: A monopolist always produces on the price inelastic part of demand.
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Refer to the above figures. Which of the panels would be consistent with the situation in which external benefits exist?
A) Panel 1 B) Panel 2 C) Panels 1 and 2 D) neither panel
Using the rule that focuses on the marginal approach to maximizing profits, a monopolist charges a price where the:
a. output sold is maximized. b. ATC curve is minimized. c. MR = MC. d. MR = 0.
Sharon was being treated unfairly by her boss, so she stormed off the job and two days later found another position. For two days, Sharon experienced:
a. cyclical unemployment. b. structural unemployment. c. seasonal unemployment. d. frictional unemployment. e. being out of the labor force.
If the demand for bus transportation in a city is inelastic, then the city should lower the price to increase revenue
Indicate whether the statement is true or false