In constructing the monopolist's input demand curve, which of the statements is FALSE?
A) The demand curve has a negative slope due to the law of diminishing marginal product.
B) Marginal revenue is always positive.
C) A monopoly restricts output and hires fewer units of labor than a perfectly competitive firm.
D) The supply curve a monopoly faces is horizontal because the monopoly is a price taker.
B
You might also like to view...
Explain what economists mean by rational choice and think of three choices that you've made today that are rational
What will be an ideal response?
Job search theory regards ________ unemployment as a socially valuable, productive investment undertaken by the job searcher
A) structural B) cyclical C) mismatch D) frictional
Diseconomies of scale are also known as
a. Increasing returns to scale b. Decreasing returns to scale c. Constant returns to scale d. None of the above
An economist estimates that 0.67 is the price elasticity of demand for disposable diapers. This suggests that disposable diaper producers could
a. advertise more to raise the price elasticity of demand b. encourage more parents to use cloth diapers c. lower the price of disposable diapers to raise more revenue d. raise the price of disposable diapers to raise more revenue e. increase revenue by lowering price elasticity of demand