A Monopolist Faces the Least Price Elastic Demand Curve Because

question 30

Multiple Choice

A monopolist faces the least price elastic demand curve because:

• A)the consumers have only one place to buy the good.
• B)the monopolist produces a standardized product.
• C)the monopolist undertakes a huge expenditure to produce the product.
• D)the monopolist supplies an insignificant portion of the market.
• E)the monopolist produces an absolutely necessary good having close substitutes.

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Definitions:

Economic Goods

Products or services that have a positive economic value and thus are subject to scarcity, requiring consumers to make choices about their allocation.

Taxes

Compulsory contributions to state revenue, levied by the government on workers' income and business profits or added to the cost of some goods, services, and transactions.

Economic Efficiency

A situation where resources are utilized in such a manner that maximizes the satisfaction of needs and wants with minimal waste or inefficiency.

Public Good

A public good is a commodity or service that is made available to all members of a society, typically free of charge, funded by taxes, and characterized by non-excludability and non-rivalry.