A monopolist Group of answer choices can charge any price it wants for its product since it has no competition. has a supply curve equal to its marginal cost curve. always earns a positive economic profit. can sell any amount of output that it wants at the market price. None of these.
Added by Ashley O.
Step 1
Step 1: A monopolist cannot charge any price it wants for its product since it is still restricted by supply and demand in the market. Show more…
Show all steps
Your feedback will help us improve your experience
Oluwadamilola Ameobi and 100 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
In a perfectly competitive industry, price equals marginal cost. Which of the following is NOT an implication of this? Group of answer choices Firms will always make zero economic profit A competitive firm sells its product at the opportunity cost of the product. The price of the product accurately reflects its cost to society. Competitive firms maximize profits.
Oluwadamilola A.
A firm's marginal cost curve above the averable cost curve is equal to the firm's individual supply curve. This means that every time a firm receive a price from the market it will be willing to supply the amount of output where the price equals marginal cost. What happens to the firm's individual supply curve if marginal costs increase?
A firm's marginal cost curve above the average variable cost curve is equal to the firm's individual supply curve. This means that every time a firm receives a price from the market it will be willing to supply the amount of output where the price equals marginal cost. What happens to the firm's individual supply curve if marginal costs increase?
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD