A profit-maximizing monopolist will always operate where demand is unit elastic
a. True
b. False
B
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If there is an excess supply of sport utility vehicles, then:
A. quantity demanded is greater than quantity supplied. B. quantity supplied is greater than quantity demanded. C. demand is greater than supply. D. supply is greater than demand.
Sarah and Diane are both billing clerks for the local trucking company earning $17,000 per year. Sarah is attending college, plans to graduate in one year and earn $55,000 as an economist
Diane is not in college or undergoing any specialized training and will have the same job next year. According to economic theory, which of the two individuals would tend to have a higher current savings rate? A) Diane B) Sarah C) Both will have the same saving rate. D) Economic theory sheds no light on this question.
Refer to the above figure. Demand will be elastic when quantity is between
A) 0 and A. B) 0 and B. C) A and B. D) B and C.
One possible benefit of a monopoly is:
a. a more efficient allocation of resources; only one firm is needed to supply quantity demanded. b. greater incentives for research due to long-run positive economic profits. c. the government is better able to ensure that it follows laws and guidelines because there is only one firm to monitor. d. goods and services are provided at a lower price than under perfect competition because of a monopoly's decreasing average cost curve.