The demand curve a monopolist uses in making an output decision is
a. the same as the demand curve facing a perfectly competitive firm
b. vertical because there are no close substitutes for its product
c. horizontal because there are no close substitutes for its product
d. the same as the market demand curve
e. perfectly inelastic
D
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Patents create monopolies by restricting
A) demand. B) prices. C) entry. D) profit.
Which of the following observations is true?
a. State governments are the shareholders of the Fed. b. The Fed chairman is appointed for a ten year term. c. FOMC decisions largely determine short-term interest rates. d. Member banks proportionately share all of Federal Reserve's profits.
A news story states that "Videotapes lose their appeal as consumers switch to DVDs for movies." In a competitive market for the purchase of videotapes of movies, this situation would lead to a(n):
a. Decrease in the price of videotapes and increase in the quantity sold b. Decrease in the price of videotapes and the quantity sold c. Increase in the price of videotapes and decrease in the quantity sold d. Increase in the price of videotapes and the quantity sold
Suppose the annual growth rate of GDP in Belize is 3.5 percent. In 20 years, GDP in Belize will double:
A. 1 time. B. 1.5 times. C. 3.5 times. D. 7 times.