Following the assumption that firms maximize profits, how will the price and output policy of an unregulated monopolist compare with ideal market efficiency?
A. output will be too small and its price too high.
B. output will be too large and its price too high.
C. output will be too small and its price too low.
D. output will be too large and its price too low.
Answer:A
Following the assumption that firms maximize profits, how will the price and output policy of an unregulated monopolist compare with ideal market efficiency?
A. output will be too small and its price too high. B. output will be too large and its price too high. C. output will be too small and its price too low. D. output will be too large and its price too low.
Explanation: 27. The slope of the demand curve for a monopoly firm is