Author Question: Suppose a single firm supplies all the ceramic windlasses in the U.S. The demand curve that firm ... (Read 74 times)

nramada · **on:** Jun 30, 2018

Suppose a single firm supplies all the ceramic windlasses in the U.S. The demand curve that firm faces is
a. elastic everywhere
b. unit elastic everywhere
c. inelastic everywhere
d. perfectly inelastic everywhere
e. elastic at the profit-maximizing quantity

Question 2

Compared to the profit-maximizing outcome, marginal cost pricing in natural monopoly leads to
a. reduced demand
b. higher price
c. reduced consumer surplus
d. more economic profit
e. greater output