A monopolist faces the least price-elastic demand curve because:
a. the consumers have only one place to buy the good.
b. the monopolist produces a standardized product.
c. the monopolist undertakes a huge expenditure to produce the product.
d. the monopolist supplies to an insignificant portion of the market.
e. the monopolist produces an absolutely necessary good having close substitutes.
a
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One could argue that price competition among oligopolistic firms is highly likely to cause the revenues of individual firms to decline, while competition on the basis of product differentiation could cause demand, and total revenues, of individual
firms to increase. Indicate whether the statement is true or false
We translate nominal income in any past year into constant, real dollars to:
A. allow us to compare changes in purchasing power over time. B. see what an income we were earning in the past would be equivalent to today. C. understand what a salary in the past would equal in current dollars to determine how much more we have actually gained in purchasing power. D. All of these statements are true.
When will an individual's budget line coincide with an iso-expected value line?
a. Always. b. Never. c. When the individual is risk-neutral. d. When the individual is offered fair odds.
Suppose that Figure 10.4 shows an industry's market demand, its marginal revenue, and the production costs of a representative firm. If the industry was perfectly competitive, a representative firm's profit would be:
A. $1,250. B. $450. C. $250. D. There is not sufficient information.