1. The supply curve for a monopolistis: A. perfectly elastic. B. upsloping. C. t
ID: 1229190 • Letter: 1
Question
1. The supply curve for a monopolistis:
A. perfectly elastic.
B. upsloping.
C. that portion of the marginal cost curve lyingabove minimum average variable cost.
2. Which of the following iscorrect?
A. The pure monopolist will maximize profit byproducing at that point on the demand curve where elasticity iszero.
B. In the seeking the profit-maximizing output thepure monopolist underallocates resources to itsproduction.
C. The pure monopolist maximizes profits by producingthat output at which the differential between price and averagecost is the greatest.
D. Purely monopolistic sellers earn only normalprofits in the long run.
Explanation / Answer
1. The supply curve for a monopolistis:
A. perfectly elastic.
B. upsloping.
2. Which of the following iscorrect?
A. The pure monopolist will maximize profit byproducing at that point on the demand curve where elasticity iszero.
B. In the seeking theprofit-maximizing output the pure monopolist underallocatesresources to its production. I would say so since they areproducing the efficient amount
C. The pure monopolist maximizes profits by producingthat output at which the differential between price and averagecost is the greatest.
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