« previous next »

Author Question: Compared to a competitive market, a single-price monopoly decreases the consumer surplus and ... (Read 141 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?

Approximately one in three babies in the United States is now delivered by cesarean section. The number of cesarean sections in the United States has risen 46% since 1996.

Did you know?

Essential fatty acids have been shown to be effective against ulcers, asthma, dental cavities, and skin disorders such as acne.

Did you know?

Green tea is able to stop the scent of garlic or onion from causing bad breath.

Did you know?

Cancer has been around as long as humankind, but only in the second half of the twentieth century did the number of cancer cases explode.

Did you know?

Aspirin is the most widely used drug in the world. It has even been recognized as such by the Guinness Book of World Records.

Single bull elk are vulnerable to predation by wolves. Single bull elk are vulnerable to predation by wolves.
) A more elaborate motif, the β barrel. This β barrel is a single domain of α-hemolysin ) A more elaborate motif, the β barrel. This β barrel is a single domain of α-hemolysin
Single- and Double-Blind Procedures Single- and Double-Blind Procedures
Withdrawing Medication from Single-Dose or Multiple-Dose Vials Withdrawing Medication from Single-Dose or Multiple-Dose Vials
Real Price of Oil, 1861–2010 Real Price of Oil, 1861–2010
Planet Earth compared to all its water and air! Planet Earth compared to all its water and air!
Video: Glomerular filtrate rate: pressures that affect GFR, NFP & GFR and blood composition

For a complete list of videos, visit our video library