Identify the correct statement
a. A monopolist's pricing decision is limited by the demand for its product.
b. A monopolist is able to choose any price and quantity combination that it desires.
c. A monopolist can increase its profits by increasing price if the demand for its good is relatively elastic.
d. A monopolist does not suffer losses even in the short run.
e. A monopolist is not able to reap positive profits in the long run.
a
You might also like to view...
Countries import some goods and export other goods primarily because of:
A) unemployment. B) self-sufficiency. C) comparative advantage. D) the law of increasing opportunity cost.
Two bonds of equal risk are for sale on the secondary bond market. The two bonds have the same face value, and both mature in 10 years. Bond A pays $10 per year and bond B pay $15 per year. Which bond will sell for a higher price?
A) Bond A B) Bond B C) They will sell for the same price. D) The relative prices will depend on the expected interest rate over the next 10 years.