What does the demand curve facing a monopoly look like? Why?
What will be an ideal response?
The demand curve facing a monopoly is downward sloping because the monopoly is the industry. Therefore, it faces the industry demand curve, which is downward sloping. For a monopolist to sell more units, it must lower price.
Economics
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In the figure above, if the market is unregulated,
A) more than the efficient amount of output will be produced. B) less than the efficient amount of output will be produced. C) the allocation of resources will be efficient because the efficient amount of output will be produced. D) the deadweight loss will be zero.
Economics
What is meant by the term "free market"?
What will be an ideal response?
Economics