Which of the following statements is true?
A) A monopolist faces an upward sloping demand curve.
B) A perfectly competitive firm faces an upward sloping demand curve.
C) A monopolist can increase the price of its product and not lose all of its business.
D) A perfectly competitive firm can increase the price of its product without losing its business.
C
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Supply-side economists argue that decreasing marginal tax rates
A) increases productivity and shifts the AS curve to the right. B) increases productivity and shifts the AS curve to the left. C) increases productivity and shifts the AD curve to the left. D) due to the Ricardian equivalence, has no impact on the economy.
When people exchange money for financial assets, the _____ rises
a. real GDP b. price level c. unemployment rate d. nominal GDP e. interest rate
The intent of parity pricing in the farm industry is to
a. drive inefficient farmers out of business b. allow a market to reach its equilibrium price c. provide only low-income farmers with government aid d. increase farm productivity with new technologies e. maintain farmers' purchasing power relative to nonfarmers
If the quantity of money supplied is greater than the quantity demanded, then prices should fall
a. True b. False Indicate whether the statement is true or false