Answer to Question #183413 in Macroeconomics for james

Question

QUESTION 13

A monopoly’s situation and decision process will differ from that of a perfectly competitive firm:

1. Only if there is stiff competition.
2. Whenever there is stiff competition.
3. Because a monopoly faces no competition.
4. Because a monopoly faces stiff competition.
5. All of the above.

QUESTION 14

A monopolist perceives the demand curve that it faces:

1. Only through normative analysis.
2. Without positive analysis.
3. To be left of the market demand curve.
4. To be the same as the market demand curve.
5. To be right of the market demand curve.

QUESTION 15

If the monopolist chooses a high level of output:

1. It will make the most profit possible.
2. It cannot be profitable.
3. It can charge only a relatively low price.
4. It might be illegal.
5. All of the above.

Answer 1

13 - 3

14 - 4

15 - 3