Compared to an efficient perfectly competitive industry, the monopolist will
A) produce less output at a higher total cost.
B) produce less output and charge a higher price.
C) produce more output at a higher price and higher profit.
D) produce more output at a lower price.
Answer: B
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Refer to Figure 7-2. The loss in domestic consumer surplus as a result of the tariff is equal to
A) $5 million. B) $19.875 million. C) $24.875 million. D) $31.125 million.
In the self-correcting AD-AS model, the economy's short-run equilibrium position is indicated by the intersection of which two curves?
A. short-run aggregate supply and long-run aggregate supply B. short-run aggregate supply and aggregate demand C. long-run aggregate supply and aggregate demand D. long-run aggregate demand and short-run personal consumption expenditures curve
If the quantity of tea demanded increases by 2% when the price of coffee increases by 6%, the cross-price elasticity of demand between tea and coffee is
A. -3. B. 0.33. C. 3. D. 12.
The discovery and utilization of vast, previously unknown oil and mineral deposits in a country will increase:
A. the unemployment rate. B. the quantity of human capital. C. the share of the population employed. D. average labor productivity.