Which of the following is true when the government imposes a price ceiling on a monopolist?
A) Marginal revenue becomes horizontal.
B) Marginal revenue is linear.
C) Marginal revenue is kinked—horizontal and then downward sloping.
D) Marginal revenue is kinked—downward sloping and then horizontal.
C
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The country in which banks are classified as city banks, regional banks, and special purpose financial institutions is
A) the United Kingdom. B) the United States. C) Japan. D) Germany.
If a monopolist is producing at an output rate at which P = ATC, then
A) its economic profit will be zero. B) its economic profit will be positive. C) it is maximizing its profits. D) it is minimizing its losses.
Ronald Coase's study, "The Nature of the Firm," argued that
a. market exchange is less costly than hierarchical exchange b. markets are more efficient than hierarchies c. firms are formed to take advantage of situations in which hierarchies are more efficient than markets d. the role of the entrepreneur is primarily to deal with central authority e. markets tend to be less competitive over time
A black market may arise when government imposes a price ceiling
a. True b. False Indicate whether the statement is true or false