Which of the following statements about a monopolist is TRUE?
A. All monopolies are unlawful in the United States.
B. Monopolies tend to supply goods at lower prices than those charged by firms in perfect competition.
C. Monopolies will always make a profit in the long run.
D. Monopolies tend to misallocate resources.
Answer: D
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The traditional typewriter market has collapsed over the past few decades because people prefer personal computers. Yet, some new typewriters continue to be produced and sold at historically low prices
How would you explain the decline in typewriter prices? A) Typewriter producers have become less greedy. B) The demand curve for typewriters has shifted to the left. C) The supply curve for typewriters has shifted to the right. D) The supply curve for typewriters has shifted to the left.
The special cost structure that is necessary for a firm to adopt a peak-load pricing policy is:
A. economies of scope. B. economies of scale. C. constant marginal cost. D. limited capacity.