The Demand Curve for the Output of a Certain Industry

question 52

Multiple Choice

The demand curve for the output of a certain industry is linear; q = A - Bp. There are constant marginal costs of C. For all values of A, B, and C such that A > 0, B > 0, and 0 < C < ,

• A) if the industry is monopolized, prices will be exactly twice as high as they would be if the industry were competitive.
• B) if the industry is competitive, output will be exactly twice as great as it would be if the industry were monopolized.
• C) if the industry is monopolized, prices will be more than twice as high as if the industry is competitive.
• D) if the industry is monopolized, output will be more than half as large as it would be if the industry were competitive.
• E) None of the above.

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Definitions:

Phenomenologists

Scholars or philosophers who study the structure of experiences to understand the essence of phenomena as consciously experienced from the first-person perspective.

Ethnography

A qualitative research method focusing on the systematic study of people and cultures from the insider perspective.

Labeling

The process of classifying or naming individuals or groups based on their actions, attributes, or perceived characteristics, often leading to stereotyping or discrimination.

Capitalism

An economic system characterized by private or corporate ownership of capital goods, by investments determined by private decision, and by prices, production, and the distribution of goods determined mainly by competition in a free market.