In the two-period dynamic monopoly, if the monopolist succeeds in selling a sufficiently high quantity in the first period,
A) the second-period demand curve will lie close to the price axis.
B) the second-period demand curve will become horizontal.
C) the second-period demand curve will become unit elastic.
D) the second-period demand curve will shift substantially to the right.
D
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State and explain three [or some other number chosen by the instructor] reasons why the scope for further expansion of developing country commodity exports is likely to be limited
What will be an ideal response?
"A competitive market achieves economic efficiency by maximizing the sum of consumer surplus and producer surplus." This statement
A) is true only if there are positive externalities in production in the market. B) is true only if there are no negative externalities in the market. C) is true only if there are no positive or negative externalities in the market. D) is true in theory, but economic efficiency cannot be achieved in a real market.