A monopolist
A) can charge whatever price it wants because it is the only firm producing the good.
B) can usually keep price equal to marginal revenue by lowering the price on the last unit sold only.
C) faces a demand curve that is more elastic than the demand curve for the industry.
D) is constrained in its pricing decisions by the demand curve it faces.
D
You might also like to view...
The break-even quantity is
a. 1250 b. 625 c. 416.67 d. 500
A competitive price-searcher firm is currently producing 10 units of output. At this level of output the firm is charging a price equal to $10, has marginal revenue equal to $6, has marginal cost equal to $6, and has average total cost equal to $12 . From this information we can conclude that
a. the firm is currently maximizing its profit. b. the profits of the firm are positive. c. firms are likely to enter this market in the long run. d. the firm would earn more profit by expanding output
Supply-side economics:
What will be an ideal response?
If financial investors believe that the prices of bonds and other assets will fall,
A) their precautionary demand for money goes up. B) their speculative demand for money goes up. C) their precautionary demand for money goes down. D) their speculative demand for money goes down.