Which of the following is not correct?
a. The demand curve facing a competitive firm is perfectly elastic.
b. The demand curve facing a monopolist is the market demand curve.
c. A monopolist can charge any price and sell any quantity that it chooses.
d. A monopolist can alter the market price by adjusting the quantity that it produces.
c
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When does the burden of a tax imposed on a good fall more heavily on consumers?
What will be an ideal response?
Robinson Crusoe is stranded on an island. He finds that coconuts are freely available (zero harvest cost), but fish are difficult to harvest and require a lot of energy. As a result, harvesting fish has a high price
If coconuts and fish are imperfect substitutes, what is Robinson Crusoe likely to consume? A) He will consume more coconuts than fish. B) He will consume more fish than coconuts. C) He will consume equal amounts of both goods. D) Not enough information is given.
A perfectly competitive firm has an 80 percent probability of a high demand of $10 and a 20 percent chance of a low demand of $8. To maximize expected profit, the firm should produce the quantity that sets the marginal cost equal to ________.
A) $9.60 B) $10.00 C) $9.20 D) $8.00
In an oligopoly, the outcome is uncertain because price and output decisions depend on the response of rivals
a. True b. False Indicate whether the statement is true or false