The Demand Curve for the Output of a Certain Industry

question 39

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/B,

• 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:

Operational Planning

The process of creating short-term, detailed steps and allocating resources to achieve the strategic goals of an organization.

Strategic Planning

A systematic process of envisioning a desired future and translating this vision into broadly defined goals or objectives and a sequence of steps to achieve them.

Strategic Planning

The process by which an organization defines its strategy or direction and makes decisions on allocating its resources to pursue this strategy.

Intermediate Planning

The process of setting medium-term goals and determining the necessary steps to achieve them, usually positioned between strategic and operational planning.