Which of the following is true for a monopolist?
A. It faces a perfectly elastic demand curve.
B. It must lower its price on all of its units in order to sell any additional units.
C. It faces many competitors.
D. Its marginal revenue curve is equal to its demand curve.
Answer: B
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Which of the following is likely to affect the position and shape of society's production possibilities frontier?
a. volume of physical resources b. level of labor skills c. level of technology d. amount of factories on hand e. All of the above are correct.
Bethany decides to get some build a chicken coop, get some chickens, and start selling fresh eggs in her neighborhood. This example describes which of the following characteristics of perfect competition?
A. large number of small firms B. homogeneous goods C. very easy entry and exit D. imperfect information