Which of the following characteristics differentiates a monopoly from a perfectly competitive firm?
a. The demand curve for a perfectly competitive firm is a downward-sloping line, while the demand curve for a monopoly is a horizontal line.
b. The demand curve for a perfectly competitive firm is a horizontal line, while the demand curve for a monopoly is a downward-sloping line.
c. The demand curve for a perfectly competitive firm is a horizontal line, while the demand curve for a monopoly is a vertical line.
d. The demand curve for a perfectly competitive firm is a downward-sloping line, while the demand curve for a monopoly is a vertical line.
b
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In the United States, the most commonly cited measure of the price level is the consumer price index
Indicate whether the statement is true or false
Consider a monopolistically competitive industry which is in long-run equilibrium. Which of the following is TRUE?
A) All firms charge a price equal to average total cost. B) All firms charge a price equal to marginal cost. C) All firms earn positive economic profit. D) Demand, average total cost, and marginal cost all intersect.
Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for laptop computers. Which panel best describes what happens in this market when the price of computer hard drives falls?
A) Panel (a) B) Panel (b) C) Panel (c) D) Panel (d)
If MPL = 3, and MRTS = -4 what is MPK?
A) 12 B) -12 C) 3/4 D) -3/4