« previous next »

Author Question: Identify some of the basic assumptions of monopoly.[br][br][b][color=black]Question ... (Read 74 times)

tichca

  • Hero Member
  • *****
  • Posts: 554
on: Jun 30, 2018
Identify some of the basic assumptions of monopoly.

Question 2

A monopolist can charge a high price if:
 a. the quantity demanded of its product is positively related to price.
  b. the demand for its product is relatively price-elastic.
  c. the demand curve for its product is negatively sloped.
  d. the demand for its product is relatively price-inelastic.
  e. there exist a large number of substitutes for its product.


joshraies

  • Sr. Member
  • ****
  • Posts: 351
Reply #1 on: Jun 30, 2018
Answer to Question 1

A monopolist produces a homogeneous product and knows with certainty the demand curve he/she faces. The monopolist always aims to maximize his/her profits and does not consider possible reactions of future competitors.

Answer to Question 2

d


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Not getting enough sleep can greatly weaken the immune system. Lack of sleep makes you more likely to catch a cold, or more difficult to fight off an infection.

Did you know?

Earwax has antimicrobial properties that reduce the viability of bacteria and fungus in the human ear.

Did you know?

Asthma occurs in one in 11 children and in one in 12 adults. African Americans and Latinos have a higher risk for developing asthma than other groups.

Did you know?

Many of the drugs used by neuroscientists are derived from toxic plants and venomous animals (such as snakes, spiders, snails, and puffer fish).

Did you know?

Women are 50% to 75% more likely than men to experience an adverse drug reaction.

Genetic variation in the color of corn kernels Genetic variation in the color of corn kernels
Eye Color Is a Sex-Linked Trait in Drosophila Eye Color Is a Sex-Linked Trait in Drosophila
Question continued Question continued
How to solve a half life problem involving exponential models (Question 2) How to solve a half life problem involving exponential models (Question 2)
Urine Color Can Signal Dehydration Urine Color Can Signal Dehydration
economic question economic question
Video: How to find out if a population is evolving?

For a complete list of videos, visit our video library