33. The demand curve faced by a firm with a patent on a marketable product a. is

Question

33. The demand curve faced by a firm with a patent on a marketable product a. is horizontal b. is vertical c. slopes upward d. slopes downward e. is nonexistent 34. Which of the following is not true of monopolists? a. The entry of new firms is not a major concern. b. Monopolists seek to maximize profits. c. Monopolists can charge any price they want and make a profit. d. Monopolists can choose any point on the market demand curve. e. Monopolists can raise price more than 10 percent. 35. If marginal cost is positive, which of the following is true? a. A monopolist always produces on the inelastic portion of the firm's demand curve. b. A monopolist always produces on the inelastic portion of the market demand curve c. A monopolist always produces on the elastic portion of the market demand curve. d. A monopolist always produces on the unit elastic portion of the market demand curve e. The presence of a monopolist increases the elasticity of demand.

Explanation / Answer

1) The demand curve faced by a firm with a patent on marketable product

Solution: slopes downward

Explanation: An invention into a marketable product will provide certain power to set the price thus the demand curve will slopes downward

2) Which of the following is not true of monopolists?

Solution: The entry of new firms is not a major concern

Explanation: The entry of new firms is restricted

2) If marginal cost is positive, which of the following is true?

Solution: A monopolist always produces on the elastic portion of the market demand curve

Explanation: To be positive, a monopolist always produces on the elastic portion of the market demand curve

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