A monopoly
a. can increase the price and increase output at the same time
b. can charge any price it wants and still sell all of its output
c. can sell any output it produces provided it accepts the market price
d. must lower the price in order to increase output
e. faces a perfectly elastic demand curve
D
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Which of the following is NOT a proposition of the Heckscher-Ohlin model?
A) A country has a comparative advantage in the production of that commodity which uses more intensively the country's more abundant resource. B) The effect of international trade is to tend to equalize factor prices between the trading nations. C) If the United States is a skilled labor abundant country, then the United States has a comparative advantage in the production of goods that use skilled labor more intensively. D) Countries will completely specialize in the product in which they have a comparative advantage if free trade is allowed to occur.
Explain why companies that choose low-pollution technologies will find it hard to survive in a competitive industry