9. The monopsonist's markdown in the buying price increases as A) the supply elasticity declines. B)...
9. The monopsonist's markdown in the buying price increases as
A) the supply elasticity declines.
B) the supply elasticity increases.
C) the demand elasticity declines.
D) the demand elasticity increases.
10. One difference between a monopoly and a competitive firm is that
A) only a monopoly is a price taker.
B) only a monopoly maximizes profit by setting marginal revenue equal to marginal cost.
C) only a monopoly faces a downward-sloping demand curve.
D) None of the above.
11. If the inverse demand function for a monopoly's product is p = a - bQ, then the firm's marginal revenue function is
A) a.
B) a - (1/2)bQ.
C) a - bQ.
D) a - 2bQ.
Homework Answers
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9. The monopsonist's markdown in the buying price increases
as
A) the supply elasticity declines.
B)...
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