When comparing a single-price monopoly to a perfectly competitive market with the same costs
A) both the monopoly's output and price are lower than the perfectly competitive market's output and price.
B) both the monopoly's output and price are higher than the perfectly competitive market's output and price.
C) the monopoly's output is higher and the monopoly's price is lower than the perfectly competitive market's output and price.
D) the monopoly's output is smaller and the monopoly's price is higher than the perfectly competitive market's output and price.
D
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Suppose you cannot buy information that completely removes the uncertainty from a business decision that you face, but you could buy information that reduces the degree of uncertainty
Based on the discussion in this chapter, the value of this partial information could be determined as the: A) expected outcome under complete certainty minus the expected outcome under the partial information case. B) expected outcome under the partially uncertain case minus the expected outcome under the completely uncertain case. C) utility of the partially certain case minus the utility of the completely certain case. D) We cannot determine the value of information under partial certainty.
What could be a reason for a rising inflation rate?
a. A decrease in government spending b. A supply shock that shifts the aggregate supply curve downward c. Unemployment below the natural rate d. Growing consumer pessimism e. A negative spending shock