The conclusion that a monopoly results in lower output and higher prices than perfect competition relies on the assumption that
A. the demand curve for a monopoly is horizontal.
B. elasticity of demand varies along the market demand curve.
C. consumers are ignorant of the effects of monopoly.
D. the costs of production are the same whether the industry is perfectly competitive or a monopoly.
Answer: D
You might also like to view...
What is the term for a price index that measures average prices of all goods and services included in the economy?
a. Real value b. Nominal value c. GDP deflator d. GDP inflator
The theory of consumer demand
a. can be used to explain how an individual allocates time between two competing uses b. is valid only for choices among various physical goods c. is valid only for goods and services purchased for cash d. is valid only if consumers are perfectly rational e. can explain the demand for normal goods, but not the demand for inferior goods
Fiscal actions to eliminate a recession are likely to decrease the federal budget deficit.
Answer the following statement true (T) or false (F)
According to the law of demand
A. ceteris paribus does not apply. B. price and quantity demanded move in the same direction. C. price and quantity demanded move in opposite directions. D. price and quantity demanded are unrelated.