One problem associated with a monopoly firm is that it
A. is just as good as a purely competitive firm in terms of output and price.
B. produces too much output and charges too low a price.
C. produces too little output but also charges a low price.
D. restricts output and charges a relatively higher price than a purely competitive firm.
Answer: D
You might also like to view...
Shaina and Mariah have a business that provides personal fitness training services. They know that after raising their prices from $100 to $150 per hour, the quantity of hours they spent delivering training services fell from 45 to 40 hours per week. The demand for their services is:
a. elastic, with a price elasticity coefficient greater than one. b. elastic, with a price elasticity coefficient less than one. c. inelastic, with a price elasticity coefficient greater than one. d. inelastic, with a price elasticity coefficient less than one.
Which of the following is an obstacle that would reduce the likelihood of effective collusion among oligopolists?
a. a highly inelastic market demand for the product b. a small number of firms in the market c. production of a homogeneous product d. highly unstable demand for the product
Refer to the diagram. By producing at output level Q:
A. neither productive nor allocative efficiency is achieved.
B. both productive and allocative efficiency are achieved.
C. allocative efficiency is achieved, but productive efficiency is not.
D. productive efficiency is achieved, but allocative efficiency is not.
The participation rate was higher in 2012 than in 1948 because
A) the labor force was larger in 2012 than in 1948. B) the unemployment rate became less variable over time. C) of the Great Moderation D) the participation rate of women rose between 1948 to 2012.