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 191 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

nathang24

  • Member
  • Posts: 314
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Street names for barbiturates include reds, red devils, yellow jackets, blue heavens, Christmas trees, and rainbows. They are commonly referred to as downers.

Did you know?

Inotropic therapy does not have a role in the treatment of most heart failure patients. These drugs can make patients feel and function better but usually do not lengthen the predicted length of their lives.

Did you know?

Asthma attacks and symptoms usually get started by specific triggers (such as viruses, allergies, gases, and air particles). You should talk to your doctor about these triggers and find ways to avoid or get rid of them.

Did you know?

Intradermal injections are somewhat difficult to correctly administer because the skin layers are so thin that it is easy to accidentally punch through to the deeper subcutaneous layer.

Did you know?

A serious new warning has been established for pregnant women against taking ACE inhibitors during pregnancy. In the study, the risk of major birth defects in children whose mothers took ACE inhibitors during the first trimester was nearly three times higher than in children whose mothers didn't take ACE inhibitors. Physicians can prescribe alternative medications for pregnant women who have symptoms of high blood pressure.

Women who are monozygotic twins and have the same genes are more similar in their marital happiness Women who are monozygotic twins and have the same genes are more similar in their marital happiness
Bell Curve for Intelligence IQ scores for a population-based sample usually fall into this kind of Bell Curve for Intelligence IQ scores for a population-based sample usually fall into this kind of
J. P. Morgan, the financial genius, staved off ruinous competition among steel firms by combining mo J. P. Morgan, the financial genius, staved off ruinous competition among steel firms by combining mo
Good body mechanics when facing the head or foot of the table. A. Head and back in alignment. B. ... Good body mechanics when facing the head or foot of the table. A. Head and back in alignment. B. ...
Juan's Software Service Company is in a perfectly competitive market. Juan has total fixed ... Juan's Software Service Company is in a perfectly competitive market. Juan has total fixed ...
Type II curve. Mortality does not vary with age. Data for five-lined skink (Eumeces fasciatus). Type II curve. Mortality does not vary with age. Data for five-lined skink (Eumeces fasciatus).
Video: Electrical changes in the heart

For a complete list of videos, visit our video library