« previous next »

Author Question: Compared to a competitive market, a single-price monopoly decreases the consumer surplus and ... (Read 160 times)

appyboo

  • Hero Member
  • *****
  • Posts: 527
on: Jun 29, 2018
Compared to a competitive market, a single-price monopoly decreases the consumer surplus and increases the economic profit. Is the previous statement correct or incorrect? Explain your answer.
 
  What will be an ideal response?

Question 2

What relationship is shown by a demand curve?
 
  What will be an ideal response?


sarahccccc

  • Sr. Member
  • ****
  • Posts: 318
Reply #1 on: Jun 29, 2018
Answer to Question 1

The statement is correct. A single-price monopoly produces less than a competitive market and sets a higher price, both of which decrease the consumer surplus but increase the economic profit.

Answer to Question 2

The demand curve shows the relationship between price and quantity demanded. Since price and quantity demanded are inversely related, the demand curve is downward sloping.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Common abbreviations that cause medication errors include U (unit), mg (milligram), QD (every day), SC (subcutaneous), TIW (three times per week), D/C (discharge or discontinue), HS (at bedtime or "hours of sleep"), cc (cubic centimeters), and AU (each ear).

Did you know?

In 2006, a generic antinausea drug named ondansetron was approved. It is used to stop nausea and vomiting associated with surgery, chemotherapy, and radiation therapy.

Did you know?

The term pharmacology is derived from the Greek words pharmakon("claim, medicine, poison, or remedy") and logos ("study").

Did you know?

Most women experience menopause in their 50s. However, in 1994, an Italian woman gave birth to a baby boy when she was 61 years old.

Did you know?

Although not all of the following muscle groups are commonly used, intramuscular injections may be given into the abdominals, biceps, calves, deltoids, gluteals, laterals, pectorals, quadriceps, trapezoids, and triceps.

Glioma. (a) Illustration of a large glioma (colored area) within the left cerebral hemisphere in a s Glioma. (a) Illustration of a large glioma (colored area) within the left cerebral hemisphere in a s
More young men than women live in their parents’ homes, though the proportion for both decreases ... More young men than women live in their parents’ homes, though the proportion for both decreases ...
Withdrawing Medication from Single-Dose or Multiple-Dose Vials Withdrawing Medication from Single-Dose or Multiple-Dose Vials
The net price of an article is $79.84. What is the list price if a discount of 23% was allowed? The net price of an article is $79.84. What is the list price if a discount of 23% was allowed?
What single payment one year from now would be economically equivalent to payments of $1,000 ... What single payment one year from now would be economically equivalent to payments of $1,000 ...
Homologous recombination: single versus double crossovers Homologous recombination: single versus double crossovers
Video: Skin Cancer

For a complete list of videos, visit our video library