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Unformatted text preview: A) Entry of new firms B) The fact that it cannot control demand C) The inability to control the quantity of output D) Its inability to chose a profit maximizing level of output 6. One of the benefits of monopoly is: A) The production of a large quantity of output B) A monopolist can afford to spend more on research and development C) A monopolist price is established by supply and demand in the market D) A monopolist is forced to reduce costs of production 7. Monopolists set prices: A) On the marginal revenue curve B) Without constraints since there is no competition C) At the output where marginal revenue equals marginal cost D) At the minimum of the long-run average total cost curve...
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This note was uploaded on 04/10/2008 for the course ECO 203 taught by Professor Reinauer during the Fall '07 term at Rollins.
- Fall '07