When a monopolist decreases the price of its good, consumers
a. continue to buy the same amount.
b. buy more.
c. buy less.
d. may buy more or less, depending on the price elasticity of demand.
b
You might also like to view...
A perfectly competitive firm has a random marginal cost with a 60 percent chance of a high marginal cost of $100 and a 40 percent chance of a low marginal cost of $90. What is the firm's expected marginal cost?
A) $94 B) $98 C) $92 D) $96
Policies that preclude the deliberate creation of monopoly and undesirable practices are called
a. antitrust policies. b. anti-monopoly policies. c. anti-competitive policies. d. socialism.
Firms in monopolistically competitive markets and monopolies can earn long-run profits due to barriers to entry
a. True b. False Indicate whether the statement is true or false
Compared to their initial positions at points A and B, as a result of complete specialization and trade, the output of the two countries added together in Figure 35.1 would result in an increase in
A. Neither DVD players nor motorcycles. B. Motorcycles only. C. DVD players only. D. Both DVD players and motorcycles.