When the person who chooses how much to purchase doesn't have to bear the full cost, the quantity demanded tends to be higher.
Answer the following statement true (T) or false (F)
True
The price to the consumer is lower, so the quantity demanded goes up.
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Which of the following is NOT true of firms in monopolistic competition?
A) They are price takers. B) They practice product differentiation. C) They have excess capacity in the long run. D) They earn a normal profit in the long run.
According to the Coase theorem, which of the following are necessary for the efficient levels of pollution to be achieved? I. Property rights are defined. II. Transactions costs are low
A) I only B) II only C) both I and II D) neither I nor II
A change in the price of hamburgers will change the supply of hot dogs
a. True b. False Indicate whether the statement is true or false
Suppose a lazy monopolist's fixed costs are higher than the fixed costs of an efficient monopolist. In all other respects the monopolists are the same. Which of the following statements about this lazy monopolist is true?
A. It produces fewer goods than the monopolist producing efficiently. B. It charges a higher price than the monopolist producing efficiently. C. It sets price and quantity the same as the monopolist producing efficiently. D. It charges a lower price than the monopolist producing efficiently.