Critically evaluate the following statement. "Since monopolies are by definition a one-firm industry they are able to charge the consumer the highest price possible."
What will be an ideal response?
This is false. Even monopolies must abide by the law of demand. The goal of the monopolist like any other firm operating in any other industry is to maximize profit, not maximize the selling price. After all, if the price charged were high enough the firm would soon be serving very few customers if any.
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A ________ monopoly sells different units of its good or service for ________
A) price-discriminating; different prices B) price-discriminating; the same price C) single-price; the same price D) single-price; different prices E) Both Answers A and C are correct.
The long-run average cost curve shows the lowest possible average cost for each output level, given that all inputs are variable.
Answer the following statement true (T) or false (F)
List the various reasons that contributed to the financial crisis that occurred in 2008
The organized withdrawal of labor from a firm by a union is called
a. a strike. b. a bargain. c. a monopoly. d. a tournament.