The demand curve facing a monopolist
a. is kinked at the market price
b. is perfectly elastic
c. lies above its marginal revenue curve
d. lies below its marginal revenue curve
e. is the same as its marginal revenue curve
C
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Refer to the figure below. A decrease in demand is represented by a shift from: 
A. curve B to curve A. B. curve C to curve D. C. curve A to curve B. D. curve D to curve C.
Firm A is a monopoly because of network effects, whereas Firm B is a natural monopoly. Which of the following statements is likely to be true in this context?
A) The average total costs of both firms decrease as they increase their output. B) The value of the product that both firms produce increases with an increase in the number of buyers. C) Firm A enjoys a monopoly status because its average total cost decreases with increase in output, whereas Firm B enjoys a monopoly status because the value of its product increases as more consumers buy it. D) Firm B enjoys a monopoly status because its average total cost decreases with increase in output, whereas Firm A enjoys a monopoly status because the value of its product increases as more consumers buy it.
According to the superstar phenomenon, the most talented person in the following occupations is likely to earn extremely high wages except
a. an author. b. an auto mechanic. c. a singer. d. an advice columnist.
In order to be successful in a market economy, entrepreneurs must
A) combine resources in a manner that increases their value. B) produce anything that consumers value, regardless of cost. C) use only personal financial capital so they can avoid interest payments on borrowed funds. D) produce a good that consumers value less than the resources used to produce it.