When would a profit-maximizing monopolist that operates with no government intervention choose to produce the competitive level of output?
What will be an ideal response?
A monopolist that faces a perfectly elastic demand curve sets its price equal to marginal cost and produces the competitive level of output.
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Suppose the market for cement is one where there are a large number of buyers and sellers, and everyone conducts transactions at a common market price. Which of the following statements is true about the structure of the cement market?
A) The cement market is free and competitive. B) The cement market is government regulated. C) All participants in the cement market set their own prices. D) All transactions in the cement market are likely to be involuntary.
Economists use a preference map to illustrate that
A) more is better than less. B) preferences are transitive. C) preferences are complete. D) All of the above.