A monopolist faces a downward-sloping demand curve because:
A. the demand for its product is inelastic.
B. the industry demand curve is horizontal.
C. resource prices increase as the monopolist expands output.
D. the entire market demand curve is the monopolist's demand curve.
Answer: D
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The first attempt for workers in the United States to organize was in
a. 1748 b. 1792 c. 1815 d. 1869 e. 1903
All four market forms discussed in the text maximize profit where
A. P = MC. B. AR = AC. C. MR = MC. D. MC = AR.
The strategy underlying price discrimination is to:
A. charge higher prices to customers who have better access to substitutes. B. charge everyone the same price but limit the quantity they are allowed to buy. C. increase total revenue by charging higher prices to those with the most inelastic demand for the product and lower prices to those with the most elastic demand. D. reduce per-unit costs by charging higher prices to those with the most elastic demand and lower prices to those with the most inelastic demand.
An option's value will never be less than zero because:
A. the option seller is required to make up any shortfall faced by the option buyer. B. the time value of the option is always less than zero. C. an option holder will never make an additional payment to exercise the option. D. the intrinsic value is always less than zero.