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Multiple Choice - Select best answer Which of the following is false? a. A monop

ID: 1247949 • Letter: M

Question

Multiple Choice - Select best answer

Which of the following is false?
a. A monopolist will sell less at a higher price.
b. A monopolist will produce where MR = MC.
c. A monopolist has a marginal revenue that is less than the price.
d. A monopolist is a price taker.

A monopoly will usually produce
a. where its demand curve is elastic.
b. where its demand curve is inelastic.
c. only when its demand curve is perfectly inelastic.
d. where its demand curve is either elastic or inelastic.

Monopoly is characterized by
a. non-price competition not necessary.
b. market entry and exit difficult or impossible.
c. unique products.
d. All of the above

Explanation / Answer

1) d. A monopoly is not a price taker; they are a price giver. Since they are the only one in the market they tell consumers what the price is. 2) I think that realistically an actual monopoly would be b. The price elasticity of demand is the percentage change in demand caused by a one percent change in relative price. A successful monopoly would face a relatively inelastic demand curve. A low coefficient of elasticity is indicative of effective barriers to entry 3) d. they have n competition, the create barriers to entry, and since they are the only one producing it, their product is unique. I hope this helps, please rate well.