Which of the following is true of the demand curve faced by a monopolist?

Which of the following is true of the demand curve faced by a monopolist?
 a. A monopolist's demand curve is infinitely elastic.
 b. A monopolist's demand curve is more elastic than a competitive firm's demand curve.
  c. A monopolist faces a relatively inelastic demand curve.
 d. A monopolist's demand curve coincides with its marginal revenue curve.
 e. A monopolist faces a positively sloped demand curve.

QUESTION 2

If there is just one producer in an industry where the average total cost curve declines throughout the output range up to where it intersects the industry demand curve:
 a. the industry will be a natural monopoly.
 b. charging a price equal to marginal cost would entail economic losses for the producer.
  c. charging a price equal to average cost would entail a welfare cost.
 d. All of the above would be true.

QUESTION 3

A country on a gold standard was able to maintain people's confidence in the value of its currency by:
 a. printing more and more paper money.
  b. restricting international exchange of goods and services.
  c. ensuring the convertibility of paper money into gold.
  d. maintaining a fixed stock of foreign currencies.
  e. ensuring balance of payment surplus.

QUESTION 4

X-inefficiency implies:
 a. the practice of using less than the optimal amount of inputs for production.
  b. the practice of using the lowest quantity of input to produce maximum output.
  c. always producing less than the optimal amount of output.
  d. excessive use of inputs relative to best-practice methods.

QUESTION 5

Which of the following statements is true?
 a. A firm that has monopoly power is a price maker.
 b. A firm that has monopoly power is a price taker.
 c. A firm that has monopoly power earns exorbitant profits.
 d. A firm that has monopoly power has a perfectly elastic demand curve.
  e. A firm that has monopoly power has a perfectly inelastic demand curve.

QUESTION 6

A natural monopoly exists if:
 a. several former competitors merge to become the only producer in the industry.
 b. average cost of production is lowest when only one firm produces the entire industry output.
  c. one firm controls the supply of an essential input used by the industry.
 d. a firm has a patent or copyright.