Refer to the graph shown. If a competitive industry producing hamburgers is taken over by a pure monopoly firm that maximizes profit:
A. price will remain at $4 but output will fall by 100.
B. price will rise to $6 and output will fall by 100.
C. price will remain at $6 but output will fall by 100.
D. output will remain at 100 but price will rise to $6.
Answer: B
Economics
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An added benefit of inflation is that it allows for the possibility of
a. menu costs. b. aggregate supply shocks. c. negative real interest rates. d. recessions.
Economics
Refer to the graph below for a monopolist in short-run equilibrium. This monopolist will charge a price:
A. 0A
B. 0B
C. 0C
D. Not labeled on the graph
Economics