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Describe a​ monopoly's demand curve.

A monopoly's demand curve:

a. is infinitely inelastic and equal to the market price.

b. is vertical at the profit-maximizing quantity.

c. is below the demand curve of the product.

d. is the same as the demand curve for the product.

e. is the same as the marginal revenue curve 

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manhokwe tawanda
manhokwe tawandaLv10
21 Jan 2021

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Related questions

The inverse demand for a monopoly's product is P=92-5Q, where Q=Q1+Q2. The marginal cost of producing in the two plants is MC1=2Q1 and MC2=6Q2.

a) How much output should be produced in each plant?

b) What is the firm's profit maximizing price?

The demand function is Q = 100 - .5P. The cost function is TC = C = 100 + 60(Q) + (Q) 2

a. Find MR and MC

b. Demonstrate that profit is maximized at the quantity where MR = MC.

c. Derive the relationship between marginal revenue and the price elasticity of demand and show that the profit-maximizing price and quantity will never be the unit-elastic point on the demand curve.

d. Using the information in (b), demonstrate that the profit-maximizing price and quantity will never be in the inelastic portion of the demand curve.

8. SMC always passes through the

a. minimum of both short run total cost curve and short run variable cost curve.

b. minimum of both short run average cost curve and short run average variable cost curve.

c. minimum of the long run average curve.

d. minimum of the short run average cost curve only.

9. In the first-degree price discrimination consumer surplus is

a. determined by elasticity of demand.

b. determined by the difference between P and MR

c. determined by area under the demand curve minus price.

d. zero.

10. A price taker firm faces a

a. perfectly elastic demand curve 

b. declining marginal revenue

c. perfectly elastic supply curve

d. declining market demand curve

11. For a discriminating monopolist, the price is usually

a. higher in the market which has elastic demand

b. higher in the market which has inelastic demand.

c. lower in the market which has inelastic demand

d. higher in the market which as higher marginal revenue.

12. At the point of inflection on the total cost curve.

a. marginal and average costs are equal.

b. marginal cost is maximum.

c. marginal cost is minimum.

d. average cost is minimum.

e. marginal product is minimum.

13. A discriminating monopolist must allocate output by the law of

a. equi-marginal utility c. equi-marginal productivity

b. equi-marginal revenue d. equi-marginal cost

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