To sell more units, a monopolist
A) simply moves across its horizontal demand curve to a larger quantity.
B) moves down its demand curve to a lower price that will increase quantity demand.
C) can continue to receive the same price it always has as long as it has its customers' goodwill.
D) must be willing to lower the barriers to entry that have protected it.
B
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The United States has the biggest national economy in the world solely because of the U.S. population.
Answer the following statement true (T) or false (F)
A problem with using the price of a product similar to the intermediate good sold on the market is
a. the market price includes a margin above marginal cost b. the product on the market may include costly features your downstream division does not use c. the product on the market may be cheap because it is not as high of quality as your downstream division uses d. all of the above
If a firm decreases production, then its:
A. fixed costs decrease. B. total costs stay the same. C. variable costs decrease. D. None of these is true.
Which of the following payment plans does NOT give an incentive to a manager to stop shirking?
A. Flat salary regardless of firm profits B. Flat salary with additional pay based on profits of the firm C. Pay schedule based solely on profits earned by the firm D. None of the statements is correct.