Question 9 (1 point) The price elasticity of demand for a monopolist Question 9

Question

Question 9 (1 point)

The price elasticity of demand for a monopolist

Question 9 options:

is infinite since the monopolist is the only firm in the market.

decreases as more competition occurs in the market.

is undefined due to the lack of competition.

increases as similar products enter the market.

Question 10 (1 point)

The monopolist should NEVER produce in the

Question 10 options:

range of output for which there is a price elasticity exceeding one.

range of output for which the price elasticity of demand is infinity.

elastic segment of its demand curve because it can increase total revenue and reduce total cost by lowering price.

inelastic segment of its demand curve because further lowering of the price reduces total revenue.

Question 11(1 point)

Antitrust laws in the United States

Question 11 options:

are the same as the laws in the European Union.

are not necessary in the twenty-first century.

have not been used in the past twenty-five years.

are an attempt to foster competition.

is infinite since the monopolist is the only firm in the market.

decreases as more competition occurs in the market.

is undefined due to the lack of competition.

increases as similar products enter the market.

Explanation / Answer

is undefined due to the lack of competition.

Explanation-Monopoly market has the market power itself and lack of competition than other markets.

inelastic segment of its demand curve because further lowering of the price reduces total revenue.

This means that where the curve is inelastic, marginal revenue is negative (dropping the price will lose revenue).
But the profit maximizing producers produce where marginal cost = marginal revenue.

inelastic segment of its demand curve because further lowering of the price reduces total revenue.

This means that where the curve is inelastic, marginal revenue is negative (dropping the price will lose revenue).
But the profit maximizing producers produce where marginal cost = marginal revenue.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.