The Shape of the Monopolist's Demand Curve Indicates That

question 25

Multiple Choice

The shape of the monopolist's demand curve indicates that:

• A)profit per unit increases as more units are sold.
• B)demand for the good produced by a monopoly firm is elastic.
• C)the firm practices price discrimination.
• D)price and output are inversely related for the firm.

---

Definitions:

Salvage Value

The forecasted sell-off price of an asset after its serviceable life has ended.

Natural Resources

Raw materials obtained from the Earth, which are utilized in the production of goods and services.

Standing Timber

Trees that are currently growing and not yet harvested, considered as assets for companies in the forestry industry.

Underground Deposits

Natural accumulations of minerals, oil, gas, or water located beneath the earth's surface which can be extracted for use or sale.