The demand curve a monopoly faces is
A. horizontal.
B. upward sloping.
C. vertical.
D. downward sloping.
Answer: D
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The __________ is the time immediately after a change in market price when sellers cannot respond by changing quantity supplied.
A. market period B. short-run C. long-run
The excess burden of a tax is:
a. the amount by which the price of a good increases. b. the loss of consumer and producer surplus that is not transferred to the government. c. the amount by which a person's after-tax income decreases as a result of the new tax. d. the welfare costs to firms forced to leave the market due to an inward shift of the demand curve.
Gertrude Stork's Chocolate Shoppe normally employs 4 workers. When the Chocolate Shoppe hired a 5th worker, the Shoppe's total output decreased. Therefore
A) the marginal product of the 5th worker is negative. B) the total output of Gertrude Stork's Chocolate Shoppe is negative. C) the average product of the 5th worker is negative. D) the 5th worker should be hired only if he is willing to accept a wage lower than the wage paid to the other 4 workers.
You are given the following market data for Venus automobiles in Saturnia
Demand: P = 35,000 - 0.5Q Supply: P = 8,000 + 0.25Q where P = Price and Q = Quantity. a. Calculate the equilibrium price and quantity. b. Calculate the consumer surplus in this market. c. Calculate the producer surplus in this market.