If the Demand Curve a Monopolist Faces Is Perfectly Elastic,then

question 120

Multiple Choice

If the demand curve a monopolist faces is perfectly elastic,then the ratio of the firm's price to the marginal cost is

• A) 0.
• B) 1.
• C) 2.
• D) None of the above-the answer cannot be determined.

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Definitions:

Consumption

The use of goods and services by households or individuals for personal or collective needs and satisfaction.

Tax Reduction

A decrease in the amount of taxes imposed by a government.

Price

The price anticipated, required, or paid in exchange for a particular item.

Quantity

The amount or number of a material or product available or produced.