A monopolist who owned the entire supply of a scarce resource would set a price
a. at about the competitive level.
b. lower than the competitive level.
c. higher than the competitive level but lower than what a monopoly producer of a non-scarce good would.
d. above that which would be chosen by a monopoly producer of a nonscarce good.
a
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A firm that operates in a perfectly competitive market
a. controls its own price, but accepts its output level as given b. controls both its own price and its own output level c. controls its own output level, but accepts its price as given d. accepts both its output level and its price as given e. controls its own price, its own output level, and its own costs
Which of the following is an example of a positive statement?
A) It is too hot to go jogging.
B) Ceteris paribus, a teacher should award a higher grade if you study more hours for an economics test.
C) When the price of an item increases, people respond by reducing their consumption of the item.
D) The government should balance the budget.