Author Question: When comparing the market price of an input in a market characterized by bilateral monopoly to a ... (Read 43 times)

pane00 · **on:** Jul 1, 2018

When comparing the market price of an input in a market characterized by bilateral monopoly to a perfectly competitive price

A) the bilateral monopoly price is always higher than the competitive price.
B) there is no difference; the bilateral monopoly price equals the competitive price.
C) the bilateral monopoly price is always less than the competitive price.
D) the bilateral monopoly price can be higher than, lower than, or equal to the competitive price.

Question 2

The perfect information assumption of perfect competition includes all of the following except one. Which one?

A) Consumers know their preferences.
B) Consumers know their income levels.
C) Consumers know the prices available.
D) Consumers can anticipate price changes.
E) Firms know their costs, prices and technology.