Suppose You Observe That Output in an Industry Occurs on the Inelastic

question 37

Multiple Choice

Suppose you observe that output in an industry occurs on the inelastic part of the market demand curve.Which of the following can you conclude from this?

• A)The industry is definitely behaving as a monopoly that is protected by barriers to entry.
• B)The industry is definitely not behaving as a monopoly that is protected by barriers to entry.
• C)The industry could be perfectly competitive.
• D)The industry is definitely not perfectly competitive.
• E)Both (a) and (d)
• F)Both (b) and (c)
• G)Both (b) and (d)
• H)None of the above

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Definitions:

Intention

An element of a valid contract; the parties must objectively intend for an agreement to be legally binding.

Reasonable Person

A hypothetical individual in the legal system who exercises average care, skill, and judgment in conduct and is used as a comparative standard for negligence.

Valid Contract

An agreement that is legally binding on both parties.

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