The demand curve that a monopolist firm faces is
a. the same as the demand curve facing a perfectly competitive firm except the monopolist is a price maker and the competitive firm is a price taker
b. the same as the demand curve facing a perfectly competitive firm except the monopolist is a price taker and the competitive firm is a price maker
c. horizontal, because there are no close substitutes for its product
d. the same as its industry demand curve
e. vertical, because there are no close substitutes for its product
D
You might also like to view...
The outcome of the game in the figure shown will be:
This figure shows the payoffs involved when Sarah and Joe work on a school project together for a single grade. They both will enjoy a higher grade when more effort is put into the project, but they also get pleasure from goofing off and not working on the project. The payoffs can be thought of as the utility each would get from the effort they individually put forth and the grade they jointly receive.
A. Joe puts forth high effort and Sarah puts forth low effort.
B. Joe puts forth low effort and Sarah puts forth high effort.
C. Joe and Sarah both put forth low effort.
D. Joe and Sarah both put forth high effort.
Smith and Jones comprise a two-person economy. Their hourly rates of production are shown in the accompanying table. Calculators Per HourComputers Per HourSmith10010Jones1206 If Smith and Jones are dividing their time efficiently and producing more than 10 computers and fewer than 120 calculators per hour, then Smith will ________ and Jones will ________.
A. split his time between computers and calculators; produce only computers B. produce only computers; split his time between computers and calculators C. produce only calculators; produce only computers D. produce only computers; produce only calculators
If bankers decide to keep a lower fraction of deposits on reserve, the money supply will
A. decrease. B. increase. C. remain unchanged. D. move more quickly through the economy.
"China is not a typical developing nation." Which of the following economic features is most likely to justify this claim?
A. The government of China spends a significant portion of its revenue on national defense. B. China has a large trade deficit with the United States. C. The Chinese government favors a freely floating exchange-rate policy. D. China has a high national saving rate.