This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: How does the demand curve facing a monopoly firm compare with the demand curve facing a perfectly ... (Read 99 times)

sarasara

  • Hero Member
  • *****
  • Posts: 521
on: Jun 29, 2018
How does the demand curve facing a monopoly firm compare with the demand curve facing a perfectly competitive firm?
 
  What will be an ideal response?

Question 2

Refer to Figure 4-9. As a result of the tax, is there a loss in producer surplus?
 
  A) Yes, because producers are not selling as many units now.
  B) No, because producers are able to raise the price to cover their tax burden.
  C) No, because the market reaches a new equilibrium
  D) No, because the consumer pays the tax.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

LVPMS

  • Sr. Member
  • ****
  • Posts: 323
Reply #1 on: Jun 29, 2018
Answer to Question 1

The demand curve facing a perfectly competitive firm is perfectly elastic (horizontal). This occurs because a firm in a perfectly competitive market is a price taker with no control over price. In contrast, the demand curve facing a monopolist is the market demand curve since it is the only producer in the market. Thus, it will be downward sloping.

Answer to Question 2

A


sarasara

  • Member
  • Posts: 521
Reply 2 on: Jun 29, 2018
Excellent

hollysheppard095

  • Member
  • Posts: 339
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

The strongest synthetic topical retinoid drug available, tazarotene, is used to treat sun-damaged skin, acne, and psoriasis.

Did you know?

Parkinson's disease is both chronic and progressive. This means that it persists over a long period of time and that its symptoms grow worse over time.

Did you know?

There are major differences in the metabolism of morphine and the illegal drug heroin. Morphine mostly produces its CNS effects through m-receptors, and at k- and d-receptors. Heroin has a slight affinity for opiate receptors. Most of its actions are due to metabolism to active metabolites (6-acetylmorphine, morphine, and morphine-6-glucuronide).

Did you know?

The Centers for Disease Control and Prevention has released reports detailing the deaths of infants (younger than 1 year of age) who died after being given cold and cough medications. This underscores the importance of educating parents that children younger than 2 years of age should never be given over-the-counter cold and cough medications without consulting their physicians.

Did you know?

Patients who have undergone chemotherapy for the treatment of cancer often complain of a lack of mental focus; memory loss; and a general diminution in abilities such as multitasking, attention span, and general mental agility.

The anatomical position: standing erect, gazing straight ahead, arms down at sides, palms facing for The anatomical position: standing erect, gazing straight ahead, arms down at sides, palms facing for
Influences on Temperature: South-facing slopes are typically more vegetated than north-facing ... Influences on Temperature: South-facing slopes are typically more vegetated than north-facing ...
Titration curve for aspartic acid Titration curve for aspartic acid
Linear dose-response curve Linear dose-response curve
The growing demand for electrical power, carbon sequestration and storage must be a priority The growing demand for electrical power, carbon sequestration and storage must be a priority
How reciprocal functions compare to the parent function How reciprocal functions compare to the parent function
Video: Sickle Cell Anemia

For a complete list of videos, visit our video library