The imposition of a maximum price at the point where the monopolist’s SMC curve intersects the D curve causes the monopolist to

Related MCQs

• Monopolists are said to be allocatively inefficient because:
• A monopolist produces 14,000 units of output and charges Rs.14 per unit. Its marginal revenue is Rs.8, its marginal cost is Rs.7 and rising, its average total cost is Rs.10, and its average variable cost is Rs.9. The monopolist should
• At the point of equilibrium of a monopolist MC cuts MR curve
• Assertion (A) Many oligopolistic industries exhibit an appreciable degree of Price rigidity or stability Reason (R) Oligopolists face a demand curve that is highly elastic for price increases and less elastic for price reductions
• The pure monopolist who is nondiscriminating must decrease price on all units of a product sold in order to sell additional units. This explains why:
• For a monopolist, marginal revenue is always less than price because
• Third degree price discrimination occurs when the monopolist charges different prices for the same commodity in different
• In the short run, a monopolist will shut down if it is producing a level of output where marginal revenue is equal to short-run marginal cost and price is
• Third degree price discrimination occurs when the monopolist charges different prices for the same commodity in different
• A discriminating monopolist will charge a higher price from which group of customers?