A monopolist
A) can charge whatever price it wants because it is the only firm producing the good.
B) can usually keep price equal to marginal revenue by lowering the price on the last unit sold only.
C) faces a demand curve that is more elastic than the demand curve for the industry.
D) is constrained in its pricing decisions by the demand curve it faces.
D
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Which of the following is evidence of a surplus of bananas?
A) The price of bananas is lowered in order to increase sales. B) Firms raise the price of bananas. C) The equilibrium price of bananas rises due to an increase in demand. D) The quantity of bananas demanded is greater than the quantity supplied.
If the government imposes a per-unit tax on sales of an industry's product, then we would expect
A) the supply curve in that industry would shift to the left. B) the supply curve in that industry would shift to the right. C) the demand curve for that industry would shift to the right. D) the demand curve for that industry would shift to the left.