In the figure above, compared to a perfectly competitive industry with the same costs, a single-price, unregulated monopoly will decrease production by
A) zero.
B) 2 units per day.
C) 4 units per day.
D) 6 units per day.
B
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If ________ GDP exceeds ________ GDP, employment exceeds its full-employment level and the unemployment rate is ________ the natural unemployment rate
A) real; nominal; below B) real; potential; below C) real; potential; above D) nominal; potential; above E) nominal; potential; below
In a market characterized by many buyers and one seller, investment in informative advertising by a seller can ____ the price of a commodity to customers and lower their _____ cost of acquiring information
a. decrease; sunk cost b. increase; transaction cost c. increase; sunk cost d. decrease; transaction cost
Adam Smith's invisible hand principle stresses the tendency of
a. self-interested individuals to pursue activities that benefit themselves, but harm the overall economic welfare of society. b. compassion to encourage productive economic activity. c. government regulation to bring the self interest of individuals into harmony with the economic welfare of society. d. the competitive market process to direct self-interested individuals into activities that enhance the economic welfare of society.
"If the amount of product differentiation in a monopolistically competitive industry is very small, the outcome in that market will not be very different than if it were a perfectly competitive industry." Explain.
What will be an ideal response?