Economic statements related to market structure and pricing

Reference no: EM1311180

True/False: For each of the following concepts, decide whether it's true or false, and briefly explain why (2-3 sentences). You can also use diagrams if they are helpful. Each correct answer is worth.

a. A monopolist can charge any price it wants.

b. An increase in a firm's marginal costs will lead to less output.

c. A firm with pricing power will have a higher mark-up, the less elastic is demand.

d. In a competitive market, an increase in raw materials costs will shift the supply curve to the right.

e. Imposing a price ceiling (legal maximum price that can be charged) below the equilibrium price in a competitive market will lead to higher consumer surplus and an increase in social welfare.

Reference no: EM1311180

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