A profit maximizing monopoly's price is
A) not consistently related to price that would prevail if the market was perfectly competitive.
B) greater than the price that would prevail if the industry was perfectly competitive.
C) less than the price that would prevail if the industry was perfectly competitive.
D) the same as the price that would prevail if the industry was perfectly competitive.
B
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In developing countries, the highest returns are from investing in
A) sanitation systems. B) transportation systems. C) defense. D) education.
Which of the following is NOT an assumption of marginal utility theory?
A) People derive utility from their consumption. B) More consumption yields more total utility. C) Marginal utility diminishes with more consumption. D) Utility can be measured and the units of utility are precisely defined.
If production function q1 = f(L, K), which of the following production functions illustrates neutral technical progress?
A) q2 = f(1.25L, 1.25K) B) q2 = f(1.25L, K) C) q2 = f(L, 1.25K) D) q2 = 1.25 * f(L, K)
Features of "Reagonomics" include all of the following except:
a. reduction in marginal tax rates. b. increased government expenditures for defense. c. deregulation of business. d. regular increases in the minimum wage.