The Demand Curve Any Monopolist Uses in Making Output Decisions

question 40

Multiple Choice

The demand curve any monopolist uses in making output decisions is:

• A) the same as the demand curve facing a perfectly competitive firm.
• B) vertical, because there are no close substitutes for its product.
• C) horizontal, because there are no close substitutes for its product.
• D) the same as the market demand curve.
• E) perfectly inelastic.

---

Definitions:

Cash Flows

Cash flows refer to the net amount of cash and cash-equivalents being transferred into and out of a business.

Cash Uses

Refers to how cash is spent or utilized by an individual or organization, including operating expenses, investment activities, and financing activities.

Direct Method

A way of preparing the cash flow statement in which actual cash flow information from the company's operations segment is used, rather than being derived from the income statement.

Operating Activities

Activities that constitute the primary or main activities of an organization, such as selling products or services.