A Monopolist That Chooses Price

question 52

Multiple Choice

A monopolist that chooses price

• A) necessarily produces less than a monopolist that chooses quantity, hence the laws against price fixing.
• B) produces the same amount as a monopolist that chooses quantity.
• C) produces more than a monopolist that chooses quantity, thus the irony of laws against price fixing.
• D) could produce more or less than a monopolist that chooses quantity since the demand curve is not specified.

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Definitions:

Sea Level

The average height of the ocean's surface between high and low tide, used as a reference point for measuring elevations and atmospheric pressure.

Fluid

A substance that has fluidity; that is, it lacks definite shape and both flows readily and yields to the slightest pressure. Most liquids and gases are fluids.

Gases

Substances that exist in a state that fills any container uniformly, without a definite shape or volume, such as oxygen or nitrogen.

Vapors

Gaseous forms of substances which are liquid or solid at room temperature, often produced by evaporation or sublimation.