The demand curve faced by a nondiscriminating pure monopoly is ________.
A. horizontal
B. derived by vertically summing the buyers' individual demand curves
C. the same as the industry's demand curve
D. more elastic than the demand curve faced by a perfectly competitive firm
Answer: C
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Which of the following is most likely to cause interest rates to fall?
A) Government borrows to finance a war. B) All firms project higher future revenue streams for all of their projects. C) All firms project lower future revenue streams for all of their projects. D) Government institutes a high tax on savings.
A move from G to H represents
A. an increase in quantity supplied.
B. a decrease in quantity supplied.
C. an increase in supply.
D. a decrease in supply.
In the Airline Pricing Strategies case discussed in the text, a product with fewer rules and restrictions can command a higher price
Indicate whether the statement is true or false
Which of the following statements is false?
A. If economic profit is negative, accounting profit must also be negative. B. Explicit costs of using market-supplied resources entail an opportunity cost equal to the dollar cost of obtaining the resources in the market. C. If economic profit is positive, accounting profit must also be positive. D. When economic profit is zero, the firm's owners could not have done better putting their resources in some other industry of comparable risk. E. None of the above statements is false.