If the monopolist charges a high price, he will sell:

A. more than demanders want to buy at that price.
B. less than if he were to charge a lower price.
C. more than if he were to charge a lower price.
D. as many as he supplies to the market at that price.


Answer: B

Economics

You might also like to view...

Some would cite the purchase of defective products and the rising cost of health care as market failures. Argue that these are not true market failures.

What will be an ideal response?

Economics

Which of the following U.S. antitrust laws prohibits mergers through the acquisition of a firm's assets if the merger would lessen competition?

a. Clayton Act. b. Robinson-Patman Act. c. Celler-Kefauver Act. d. Sherman Antitrust Act.

Economics

America's banking system is called a fractional reserve system

a. True b. False Indicate whether the statement is true or false

Economics

The following table indicates Sharona's marginal utilities from the additional consumption of goods A and B. The first and third columns of the table show the quantities of goods A and B consumed. The second and the fourth columns show Sharona's marginal utilities from each additional unit of goods A and B consumed. The price of A is $2 per unit and the price of B is $4 per unit. If Sharona's budget is $12, then which of the following combinations would maximize her total utility? QA MUA QB MUB 1 24 1 48 2 22. 2 44 3 18. 3. 36 4. 12. 4. 24

a. ?1 unit of A; 4 units of B b. ?4 units of each good c. ?4 units of A; 1 unit of B d. ?2 units of each good e. ?0 units of A; 3 units of B

Economics