Which is true of a single price monopoly firm?
A. Its supply curve is equal to its marginal cost function.
B. It creates more welfare loss to society than a perfect price discriminating monopolist.
C. An increased profits tax will lower the quantity the firm will produce.
D. Its shutdown point is where ATC = price.
Answer: B
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For demand to exist, there must be
a. a desire and an ability to buy. b. a supply of the product in the market. c. a price that is low enough to permit all consumers to afford the product. d. All of these.
In the late 1950s and early 1960s, postwar U.S. economic performance led to the formulation of and belief in a
A) vertical Phillips Curve in the short and long runs. B) vertical Phillips Curve in the long run. C) horizontal Phillips Curve in the short and long runs. D) downward-sloping Phillips Curve in the short and long runs.
A good is normal for a consumer if
A) it is always consumed in a consistent quantity. B) its consumption rises when income rises. C) its consumption falls when income rises. D) some minimal level of the good must be consumed to assure the consumer's survival.
Total surplus is at its minimum when the market operates at the equilibrium price and quantity
a. True b. False Indicate whether the statement is true or false