In the long run, a monopoly's
a. economic profits are zero
b. economic profits are negative
c. economic profits are positive
d. demand is perfectly inelastic
a
You might also like to view...
Changes in all of the following shift the LM curve except
a. the price level. b. income. c. the money supply. d. money demand. e. all of the above shift LM curve.
In general, the smaller the price elasticity:
a. the smaller the responsiveness of price to changes in quantity. b. the smaller the responsiveness of quantity to changes in price. c. the larger the responsiveness of price to changes in quantity. d. the larger the responsiveness of quantity to changes in price.
Frequently, in the short run, the quantity supplied of a good is
a. impossible, or nearly impossible, to measure. b. not very responsive to price changes. c. determined by the quantity demanded of the good. d. determined by psychological forces and other non-economic forces.
A monopolist sets its price
A. below the demand curve. B. without constraints since there is no competition. C. on the demand curve, at the rate of output where marginal revenue equals marginal cost. D. at the minimum of the long-run average total cost curve.