Because a monopolist is the sole producer in its market, it can necessarily alter the price of its good
a. by adjusting the quantity it supplies to the market.
b. by changing its marginal cost.
c. without affecting its average total cost.
d. without affecting the quantity sold.
Ans: a. by adjusting the quantity it supplies to the market.
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A monetarist economist believes that
A) if the economy was left alone, it would rarely operate at full employment. B) the economy is self-regulating and always at full employment. C) the economy is self-regulating and will normally, though not always, operate at full employment if monetary policy is not erratic. D) the economy is self-regulating and will normally, though not always, operate at full employment if fiscal policy is not erratic.
Identify two ways by which the government controls monopolies?
What will be an ideal response?