Other things equal, a monopolist will hire
A) more workers than a perfectly competitive industry.
B) fewer workers than a perfectly competitive industry.
C) more workers than a perfectly competitive firm.
D) the same number of workers as a perfectly competitive industry would.
Answer: B
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Refer to Table 6-1. Suppose you own a bookstore. You believe that you can sell 40 copies per day of the latest John Grisham novel when the price is $35
You consider lowering the price to $25 and believe this will increase the quantity sold to 50 books per day. Compute the price elasticity of demand using the midpoint formula and these data. Select the correct implication from your work. A) The demand for the John Grisham book is elastic. Revenue will rise if the price is lowered. B) The demand for the John Grisham book is elastic. Revenue will fall if the price is lowered. C) The demand for the John Grisham book is inelastic. Revenue will fall if the price is lowered. D) The demand for the John Grisham book is inelastic. Revenue will rise if the price is lowered.
In measuring the sensitivity of demand, the
a. price and income elasticities refer to movements along the demand curve; other elasticities refer to shifts of the entire demand curve b. price and cross-price elasticities analyze movements along the demand curve; other elasticities refer to shifts of the entire demand curve c. income and cross-price elasticities refer to movements along the demand curve; price elasticity refers to shifts of the entire demand curve d. price elasticity refers to movements along the demand curve; income and cross-price elasticities refer to shifts of the entire demand curve e. income elasticity refers to movements along the demand curve; other elasticities refer to shifts of the entire demand curve