This topic contains a solution. Click here to go to the answer

Author Question: How does the demand curve facing a monopoly firm compare with the demand curve facing a perfectly ... (Read 199 times)

sarasara

  • Hero Member
  • *****
  • Posts: 521
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
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
Thanks for the timely response, appreciate it


phuda

  • Member
  • Posts: 348
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

Did you know?

The tallest man ever known was Robert Wadlow, an American, who reached the height of 8 feet 11 inches. He died at age 26 years from an infection caused by the immense weight of his body (491 pounds) and the stress on his leg bones and muscles.

Did you know?

Tobacco depletes the body of vitamins A, C, and E, which can result in any of the following: dry hair, dry skin, dry eyes, poor growth, night blindness, abscesses, insomnia, fatigue, reproductive system problems, sinusitis, pneumonia, frequent respiratory problems, skin disorders, weight loss, rickets, osteomalacia, nervousness, muscle spasms, leg cramps, extremity numbness, bone malformations, decayed teeth, difficulty in walking, irritability, restlessness, profuse sweating, increased uric acid (gout), joint damage, damaged red blood cells, destruction of nerves, infertility, miscarriage, and many types of cancer.

Did you know?

Ether was used widely for surgeries but became less popular because of its flammability and its tendency to cause vomiting. In England, it was quickly replaced by chloroform, but this agent caused many deaths and lost popularity.

Did you know?

Though “Krazy Glue” or “Super Glue” has the ability to seal small wounds, it is not recommended for this purpose since it contains many substances that should not enter the body through the skin, and may be harmful.

Did you know?

Autoimmune diseases occur when the immune system destroys its own healthy tissues. When this occurs, white blood cells cannot distinguish between pathogens and normal cells.

For a complete list of videos, visit our video library