In order to sell more of its product, a monopolist must
a. sell to the government.
b. sell in international markets.
c. lower its price.
d. use its market power to force up the price of complementary products.
c
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Studies suggest that brand loyalty is based primarily on real differences among competing products, suggesting that persuasive advertising is an ineffective means to maintain or increase market share
Indicate whether the statement is true or false
Refer to the graph shown. Which statement best characterizes the difference between the effect of a price ceiling in the short run and the long run?
A. A price ceiling of P0 will create a shortage of (Q3 ? Q0) in the short run and the long run. B. A price ceiling of P0 will create a shortage of (Q4 ? Q0) in the short run and the long run. C. A price ceiling of P2 will create a shortage of (Q3 ? Q1) in the short run, but a greater shortage of (Q3 ? Q0) in the long run. D. A price ceiling of P2 will create a shortage of (Q3 ? Q0) in the short run and a smaller shortage of (Q3 ? Q1) in the long run.
Which of the following is an effect on a borrowing nation if the real interest rate on its loans rises?
A. There will be a higher incentive to default B. A default is more acceptable to the foreign lenders C. The fixed costs of nonrepayment can increase D. A default imposes a smaller penalty on the borrower
In the short run, the point on the aggregate demand curve where an economy will end up depends on:
A. the short-run aggregate supply curve. B. the money supply. C. potential output. D. the long-run rate of inflation.