Which of the following correctly describes how a firm's monopoly power would decrease? A. If the production process in...
Which of the following correctly describes how a firm's monopoly power would decrease?
A.
If the production process includes more fixed inputs, the firm's demand will become more elastic.
B.
If the number of firms increases, the firm's demand will become more inelastic.
C.
If the market demand curve becomes more elastic, the firm's demand curve will become more elastic.
D.
If the cost of production increases, the firm's demand will become more elastic.
E.
If other firms are reluctant to raise their price, the firm's demand will become more inelastic.
Homework Answers
A monopoly enjoys market power because the demand for its product is inelastic.If the demand becomes elastic,it cannot have much hold on price and market price.
Answer-C
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