Author Question: For a common resource, the marginal private cost of the resource is equal to the marginal social ... (Read 83 times)

yoroshambo · **on:** Jun 29, 2018

For a common resource, the marginal private cost of the resource is equal to the marginal social cost.

Indicate whether the statement is true or false

Question 2

Comment on the following: A monopolist is a firm that can raise its price without experiencing a decrease in its total revenue.

What will be an ideal response?

jojobee318 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

FALSE

Answer to Question 2

This statement describes a firm for which demand is price inelastic. Because a profit maximizing monopolist sets its price on the elastic portion of the demand curve, this statement is false.