A Monopoly

question 88

Multiple Choice

A monopoly

• A)faces a perfectly elastic demand.
• B)ignores the demand curve because it is the only seller.
• C)can raise the price it charges only if it decreases the quantity that it sells.
• D)can raise the price it charges only if it increases the quantity that it sells.
• E)faces a perfectly inelastic demand.

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Definitions:

Trade Benefit

The advantage gained by countries, companies, or individuals from engaging in international trade, including increased economic output, efficiency, and consumer choice.

Soybeans

A type of edible legume that is widely cultivated for its nutrient-rich seeds and oil.

Alfalfa

A perennial flowering plant widely cultivated as fodder for livestock due to its high protein content and essential nutrients.

Opportunity Cost

The cost of foregone alternatives; the value of the best alternative that is given up as a result of making a decision.