The Price of a Factor Supplied in a Monopolistic Factor

question 57

Multiple Choice

The price of a factor supplied in a monopolistic factor market, as compared to a situation where the monopoly supplier is broken up into a large number of firms selling the factor in a perfectly competitive factor market:

• A) is less than the price of a factor in an otherwise perfectly competitive factor market.
• B) is equal to the price of a factor in an otherwise perfectly competitive factor market.
• C) decreases with the quantity of the factor sold.
• D) increases with the quantity of the factor sold.

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Definitions:

Satisfy A Need

Meeting the requirements or desires of a consumer through the provision of products, services, or information.

Motivation

The internal or external factors that stimulate desire and energy in people to be continually interested and committed to a job, role, or subject, or to make an effort to attain a goal.

Psychological Influences

Factors that affect the behavioral, emotional, or cognitive processes of an individual, influencing their perceptions, decisions, and actions in various contexts, including consumer behavior.