To induce an increase in the quantity demanded of its product, a monopolist must reduce the
A) quality of its product and thereby generate a downward shift its ATC curve.
B) price of its product and thereby generate a rightward shift in its demand curve.
C) price of its product and thereby generate a rightward movement along its demand curve.
D) quality of its product and thereby generate a downward movement along its ATC curve.
C
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The above figure shows the demand and supply curves for housing in City B. What would be the effects of a rent ceiling equal to $1000 per month?
A) a surplus equal to 3000 apartments B) a surplus equal to 250 apartments C) a shortage equal to 3000 apartments D) nothing because the rent ceiling has no effect on the equilibrium price and quantity
If economies of scale are relatively unimportant in an industry, the typical firm's long-run average total cost curve will reach a minimum at a level of output that is a ________ fraction of total industry sales. The industry will be ________
A) large; competitive B) small; an oligopoly C) large; an oligopoly D) small; competitive
The major labor market problem in the United States is ________ and in Western Europe the problem is ________.
A. increasing wage inequality; increasing wage inequality B. increasing wage inequality; high persistent unemployment C. high persistent unemployment; low average wages D. high persistent unemployment; increasing wage inequality
Which of the following is true for a "closed economy"?
A) government spending equals taxes B) there are no imports or exports C) exports equal imports D) there is no saving E) there is no government spending or taxes