In: Economics
This is a good question to review how much you have learned
about monopolies. Of the following eight statements, which one(s)
is/are true?
Choose one or more:A. Compared to a competitive firm, a monopoly’s
demand curve is relatively elastic.B. A monopolist sells
a good that has no close substitutes.C. Rent seeking by monopolies
imposes additional costs on society above the deadweight loss.D. A
monopolist that sets a single profit-maximizing price will
not set price along the inelastic portion of the demand
curve.E. Compared to a competitive market, monopolies typically
charge a lower price and produce more output.F. Unregulated
monopolies are illegal in the United States.G. A regulated
monopolist is likely to have lower costs than an unregulated
monopoly.H. One way governments can reduce the market power of
domestic monopolies is to increase tariffs on imported goods.