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bulgar [2K]
2 years ago
13

Which of the following correctly describes how a​ firm's monopoly power would​ decrease? A. If the production process includes m

ore fixed​ inputs, the​ firm's demand will become more elastic. B. If the market demand curve becomes more​ elastic, the​ firm's demand curve will become more elastic. C. If the cost of production​ increases, the​ firm's demand will become more elastic. D. If the number of firms​ increases, the​ firm's demand will become more inelastic. E. If other firms are reluctant to raise their​ price, the​ firm's demand will become more inelastic.
Social Studies
1 answer:
fenix001 [56]2 years ago
8 0

Answer: B. If the market demand curve becomes more​ elastic, the​ firm's demand curve will become more elastic

Explanation:

Monopoly is a market structure whereby there is just one single supplier for a particular good or service. The monopolist controls the price.

We should note that the monopolist enjoys market power due to theofact that its product has an inelastic demand that is, a price change will have a minimal impact on the demand.

But the monopoly power will reduce in a case whereby the market demand curve becomes more​ elastic, then the firm's demand curve will become more elastic as well.

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