In monopoly which of the following is true ?

Related Mcqs:

When a monopolist produces an additional unit, the marginal revenue generated by that unit must be ?

A. below the price because the price effect outweighs the output effect B. above the price because the output effect outweighs the price effect C. above the price because the price effect outweighs the output effect D. below the price because the output effect outweighs the price effect...

Which of the following statements about price and marginal cost in competitive and monopolized markets is true ?

A. In competitive markets, price equals marginal cost, in monopolized markets price exceeds marginal cost. B. In competitive markets price equals marginal cost, in monopolized markets price equals marginal cost C. In competitive markets price exceeds marginal cost, in monopolized markets price exceeds marginal cost D. In competitive markets price exceeds marginal cost in monopolized … Which of the following statements about price and marginal cost in competitive and monopolized markets is true ?Read More...

Which of the following is necessary for a natural monopoly ?

A. economies of scale B. a high proportion of the total cost in the cost of capital goods C. the market is very small D. all of the above...

Compared to a perfectly competitive market a monopoly market will usually generate ?

A. higher prices and lower output B. higher prices and higher output C. lower prices and lower output D. lower prices and higher output...

Using government regulations to force a natural monopoly to charge a price equal to his marginal cost will ?

A. Cause the monopolist to exit the market B. improve efficieny C. raise the price of good D. attract additional firms to enter the market...