A Monopoly

question 145

Multiple Choice

A monopoly

• A) faces a perfectly elastic demand curve.
• B) does not need to take account of demand because it's the only seller.
• C) is able to raise the price it can charge for its product by increasing the quantity sold.
• D) is able to raise the price it can charge for its product by decreasing the quantity sold.

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Definitions:

Repetitive Procedure

A method or operation that is carried out repeatedly to test the consistency and reliability of results.

Satisficing

A decision-making strategy that aims for a satisfactory or adequate solution, rather than the optimal one.

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a person's mind when evaluating a specific topic, concept, method, or decision.

Representative Heuristic

A cognitive shortcut that involves judging the probability of an event by its resemblance to a prototype or typical example, potentially leading to biases in decision-making.