TABLE 10- 1 -A Monopolistic Firm Faces a Downward- Sloping Demand Curve Because

question 89

Multiple Choice

TABLE 10- 1 $$\begin{array} { | l | c | } \hline \text { Price } & \begin{array} { c } \text { Quantity } \\\text { Demanded }\end{array} \\\hline \$ 8 & 5 \\\hline \$ 7 & 6 \\\hline \$ 6 & 7 \\\hline \$ 5 & 8 \\\hline \$ 4 & 9 \\\hline \$ 3 & 10 \\\hline \$ 2 & 11 \\\hline\end{array}$$
-A monopolistic firm faces a downward- sloping demand curve because

• A)the demand for its product is always inelastic.
• B)marginal revenue is negative throughout the feasible range of output.
• C)there are a large number of firms in the industry,all selling the same product.
• D)the monopolistic firm can exploit economies of scale.
• E)the market price is affected by the amount sold by a monopolistic firm.

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Definitions:

Management Function

The activities undertaken by managers in planning, organizing, leading, and controlling to achieve organizational goals.

Expensive

Referring to something that has a high cost or price, often requiring a considerable amount of money to purchase.

Hygiene Factors

Factors related to the work environment that, while not directly motivating, can lead to dissatisfaction if missing or inadequate; a concept in Herzberg's two-factor theory.

Herzberg

Refers to Frederick Herzberg, a psychologist best known for developing the Motivation-Hygiene Theory, which differentiates between factors that satisfy or dissatisfy employees in the workplace.