The Price of a Factor Supplied in a Monopolistic Factor

question 57

Multiple Choice

The price of a factor supplied in a monopolistic factor market, as compared to a situation where the monopoly supplier is broken up into a large number of firms selling the factor in a perfectly competitive factor market:

• A) is less than the price of a factor in an otherwise perfectly competitive factor market.
• B) is equal to the price of a factor in an otherwise perfectly competitive factor market.
• C) decreases with the quantity of the factor sold.
• D) increases with the quantity of the factor sold.

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Definitions:

Stakeholder

An individual or group that has an interest or concern in an organization, project, or event, which can be affected by or affect its outcomes.

Community

A group of people living in the same place or having a particular characteristic in common.

Stakeholders

The groups of people affected by a firm’s decisions.

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives, often involving judgment, evaluation, and reasoning.