A Firm Can Be the Sole Supplier of a Good

question 328

Multiple Choice

A firm can be the sole supplier of a good and is still not a monopolist if

• A) the firm is not large.
• B) the good produced is not important to the economy.
• C) the firm is not making excessive profits.
• D) there are very close substitutes for the good.

Apply the concept of elasticity to various market scenarios including the impact on total revenue and decision-making.

Distinguish between perfectly elastic, perfectly inelastic, unit elastic, elastic, and inelastic demand.

Comprehend the implications of elasticity for policy-making and individual choices in specific contexts.

Interpret graphical representations of demand and elasticity changes.