Which of the following would force a monopoly to charge a lower price?
A) A new firm selling the same enters the market.
B) A new firm selling the same product locates close to the monopoly.
C) A new firm introduces a better substitute for the firm's product.
D) All of the above.
D
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The figure above shows the relationship between study time and the number of problems worked. The curve becomes less steep because as you study more,
A) study time becomes less effective. B) study time becomes more effective. C) the number of problems worked increases. D) the number of problems worked decreases. E) the relationship between study time and the number of problems worked changes from direct to inverse.
With a required reserve ratio of 20 percent, an increase in reserves of $10,000 could lead to a maximum increase in checking account deposits in the entire banking system of
A) $2,000. B) $8,000. C) $50,000. D) $100,000.
If the population growth rate is 2%, the incremental capital output ratio is 3, the saving ratio is 24%, and the depreciation rate is 5%, the rate of growth of income is
(a) 1%. (b) 2%. (c) 3%. (d) 5%. (e) 8%.
Which of the following statements is TRUE about the relationship between a firm's demand curve under perfect competition and monopoly?
A) Under perfect competition, the demand curve is perfectly elastic; under monopoly, the demand curve has elastic, unit-elastic and inelastic portions. B) Under monopoly, the demand curve is perfectly elastic; under perfect competition, the demand curve has elastic, unit-elastic and inelastic portions. C) The demand curves for a monopoly and perfect competition are always inelastic. D) We can define a demand curve under perfect competition but not under monopoly.