True or false? A pure monopolistic demand curve is the industry demand curve.
Question:
True or false? A pure monopolistic demand curve is the industry demand curve.
Monopoly Market:
In microeconomics, a monopoly market structure is one where there is only one seller of a unique product or service. Monopolies are generally viewed as a type of market failure, and therefore are either broken up or regulated.
Answer and Explanation:
Become a Study.com member to unlock this answer! Create your account
View this answerSee full answer below.
Ask a question
Our experts can answer your tough homework and study questions.
Ask a question Ask a questionSearch Answers
Learn more about this topic:
Get access to this video and our entire Q&A library
What is a Monopoly in Economics? - Definition & Impact on Consumers
from
Chapter 7 / Lesson 2
36K
Understand the meaning of a monopoly in economics and what it does. Also, know the characteristics of a monopoly and the different types of monopolies.
Related to this Question
- True or false? A monopolistic firm's demand curve is less elastic than a purely competitive firm's demand curve.
- True or false? A monopolistic firm's demand curve is always inelastic.
- Answer true or false: The monopolistic competitive firm faces a perfectly elastic demand curve.
- True or false? A monopolist produces on the inelastic portion of its demand curve.
- True or false? If the demand curve for a good is a steep, straight line, then the demand for the good is inelastic at every point along that demand curve.
- In the monopolistic competition model, the firm's demand curve is a horizontal line. True or false?
- True or false? Along a single demand curve, demand elasticity decreases as you move down the curve (to lower prices).
- The demand curve in a perfectly competitive market is perfectly elastic. TRUE or FALSE.
- True or false? A monopolist is constrained by demand in setting its price.
- State true or false. Since a monopolist is a price taker, it cannot have a supply curve.
- A monopolist's marginal revenue curve is flatter than its demand curve. a. True b. False
- a) The Market Demand Curve is the same an Individual Demand Curve? True or False. Discuss b) Does the market demand curve always slope downward to the right? If your answer is yes, discuss. If your an
- True or false? The aggregate demand curve is the sum of individual demand curves in the economy.
- A monopolist will always want to produce in the more elastic segment of its demand curve. a. True. b. False.
- A monopolist never produces on the elastic portion of his demand curve. a. True b. False
- True or false? In a perfectly competitive market, each firm faces a perfectly elastic demand curve.
- Under perfect competition, the industry has a negatively sloped market demand curve. Is this true or false?
- A monopolist does not have a supply curve because the firm's decision about how much to supply is impossible to separate from the demand curve it faces. a. True b. False
- True or false? Downward-sloping industry demand curves characterize monopoly markets, and horizontal demand curves characterize perfectly competitive markets.
- The aggregate demand curve is the sum of individual demand curves in the economy. (a) true (b) false
- If the market demand curve for a good is a downward-sloping line, its price elasticity is constant. a. True. b. False.
- True or false? The elasticity of demand is constant along a linear demand curve.
- Every firm is constrained by the demand curve for the product it produces. True or false?
- True or false? A competitive firm's supply curve is identical to its marginal cost curve.
- True or False: A monopolist sells to two markets: Market 1: there is a constant elasticity of demand e1<-1 Market 2: there is a constant elasticity of demand e2>-1. The monopolist charges a higher pr
- True or false? A competitive firm faces a downward-sloping demand curve for its product.
- True or false? Perfectly inelastic demand occurs when the demand curve is horizontal.
- True or false? A monopoly is a market structure in which the firms face a perfectly elastic demand curve.
- A monopolist will always pick a price in the elastic region of the demand curve. a. True b. False
- True/False: Under monopoly, relative markups are higher when demand elasticity is lower.
- True or False: The flatter the demand curve passing through a given point, the less elastic the demand curve at that point.
- True or false? Microeconomic equilibrium happens when the aggregate supply and aggregate demand curves intersect.
- If the demand curve is a linear function of price, then the price elasticity of demand is the same at all prices. a. True. b. False.
- A monopolist always sets price equal to the unitary elastic point on its demand curve.? a. True b. False, Use a graph.
- True or false? In a market in which there is a perfectly price discriminating monopolist, there is no consumer surplus.
- The market demand curve is simply the horizontal sum of the individual demand curves. a. True. b. False.
- True or false? The value of the price elasticity of demand is not equal to the slope of the demand curve.
- The socially efficient quantity is found where the demand curve intersects the marginal cost curve. a. True b. False
- True or false? A monopolist is constrained by marginal cost in setting its price.
- Perfectly inelastic demand occurs when the demand curve is vertical. True False
- True or False: When a perfectly competitive firm's demand curve lies above its average total cost curve, the firm incurs an economic loss at that level of output.
- True or False: The demand curve facing a monopolistically competitive firm is elastic. The goal of the firm's owner is to make it nearly inelastic. Explain.
- Answer true or false and explain: The supply curve for a monopolist is the portion of the MC curve lying above the AVC curve.
- True or false? Market equilibrium occurs at the intersection of the supply and demand curves.
- If the demand curve of a competitive firm is tangent to the low point on the AVC curve, the firm's profits are the same whether it shuts down or produces. (a) True (b) False.
- When demand is perfectly inelastic with respect to price, the demand curve is horizontal. True or false?
- State True or False and justify your answer: A monopoly with a more elastic demand curve will have more market power.
- In a perfectly competitive market, firms take the market price as a given, which implies that the market demand is infinitely elastic. True or False?
- True or False: A monopoly's supply curve is the portion of its marginal cost curve that lies above its average variable cost curve.
- Is this true or false? A market demand curve is constructed by summing the quantities demanded of all individuals at each price.Is this true or false? A market demand curve is constructed by summing
- The flatter the demand curve passing through a given point, the less elastic the demand curve at that point. a. True b. False
- True or false? Demand curves of individuals obey the law of demand but market demand curves do not.
- Because individual demand curves slope down, the aggregate demand curve slopes up. a. True. b. False.
- The value of the price elasticity of demand is equal to the slope of the demand curve. True or false?
- With respect to the kinked demand curve, price is greater than marginal costs. True False
- The demand curve facing a monopolistically competitive firm is elastic. The goal of the firm's owner is to make it nearly inelastic. Is this True or False. Explain
- In the monopolistic competition model, the existence of brands makes demand curves faced by any one seller upward sloping. True or false?
- True or false? A demand curve that is flatter (has a less steep slope) is relatively more elastic than a demand curve that has a steeper slope.
- Answer true or false: A monopolist's marginal revenue is 0 whenever the price elasticity of demand is -1.
- True or false? In free market equilibrium, demand equals supply at the equilibrium price.
- A perfectly inelastic demand curve is a horizontal straight line. a. True. b. False.
- True or False: Consider a monopolist that produces two interrelated goods A and B with Q_A(P_A, P_B) and Q_B (P_A, P_B) where Q is the demand and P is the price. If \frac{dQ_A]{dQ_B}= 0, the firm could charge the same price as a monopolist in market A whi
- A monopolist's short-run demand curve for labor coincides with its marginal revenue product of labor curve. True or false?
- True or false? An oligopolist does not face a downward-sloping demand curve.
- True or false? Monopolies charge a mark-up over marginal cost because they face a perfectly elastic supply curve.
- A monopolist will never produce where the demand function is inelastic. Explain your answer. (i) True (ii) False
- The Monopolistic Competitive firm is a price maker. a. True b. False
- True or false? For a perfectly competitive industry or firm, a constant cost industry has a downward sloping supply curve in the long run.
- True or false? Marginal utility analysis is unrelated to the demand curve.
- The ratio of price to marginal cost for a monopolist increases as the demand curve becomes more elastic. True or False? Explain
- Consumer surplus is the area above the demand curve and below the equilibrium price. True or False.
- True or false? Unlike the perfect competitor, who is a price taker, the monopolist is faced with a demand curve such that he/she can charge whatever price he/she wishes.
- True or false? A monopoly firm will maximize profit by producing where demand is inelastic.
- True or False: The laws of supply and demand are immutable. No one, including government, can affect a commodity s demand curve or supply curve.
- Price-discriminating, profit-maximizing monopolists charge higher prices to buyers who have more elastic demand curves. a. True b. False
- The price elasticity of demand for the industry is always smaller (in absolute terms) than the price elasticity of demand of firms within that industry. True or False. Explain.
- True or false? Marginal revenue is less than price for monopolies and monopolistically competitive firms.
- For a competitive firm, the supply curve is that part of the average variable cost curve that is above the short-run marginal cost curve. a. True b. False
- Determine whether the following statement is true or false: A monopolist will always want to produce in the more elastic segment of its demand curve.
- Determine whether the statement is true or false. The marginal revenue curve for a competitive firm is its demand curve.
- True or False: Product differentiation helps explain the slope of the demand curve facing a firm in monopolistic competition.
- When the demand curve shifts, the change in equilibrium price will be smaller the closer the price elasticity of supply is to 0. True False
- The long-run aggregate demand curve can never shift. True False
- True or False: In an increasing cost industry, the long-run equilibrium price is unchanged after an increase or decrease in market demand.
- True or False: \\ Equilibrium in monopolistically competitive markets requires that firms be operating at the minimum point on the long-run average cost curve.
- True or false? Assuming a linear demand curve, a firm that wants to maximize its revenue will charge a lower price than a firm that wants to maximize its profits.
- A decreasing-cost industry has a long-run supply curve that is upward sloping. a. true b. false
- A monopolist will always charge a higher price than a purely competitive industry. (a) True (b) False.
- True or false? Equilibrium in a monopolized market is efficient because the monopolist always produces where marginal cost equals marginal revenue.
- True or false? A rightward shift in the supply curve, assuming no change in the demand curve, will increase the price and decrease the quantity demanded.
- True or false? The more inelastic the demand, the closer marginal revenue is to price.
- Following a rightward shift a demand curve, demand will be less elastic at any given price. True False Explain.
- True or false? A change in expectations could shift either the demand curve or the supply curve.
- Excess demand in a market economy would force prices down. True False
- Assuming a linear demand curve, a firm that wants to maximize its revenue will charge a lower price than a firm that wants to maximize its profits. Is this statement true or false? Explain.
- True or false? A profit-maximizing monopolist has a lot of market power.
- 1. Consumer surplus can be measured as the area between the demand curve and the supply curve. a. True b. False 2. An increase in price increases consumer surplus. a. True b. False 3. Implicit costs
- True or False: Both the supply and demand curves depend on expectations but the supply curve depends on the expectations of the buyer and the demand curve depends on the expectations of the seller.
Explore our homework questions and answers library
Browse
by subject