1) A monopoly always operates in the inelastic portion of its demand curve 2) A specific tax imposed on a monopolist may increase the price by more than the tax 3) The optimal patent length is equal to 20 years. 4)The telephone is an example of a product with network externalities.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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True False Question Please Explain

1) A monopoly always operates in the inelastic portion of its demand curve
2) A specific tax imposed on a monopolist may increase the price by more than
the tax
3) The optimal patent length is equal to 20 years.
4)The telephone is an example of a product with network externalities.
Transcribed Image Text:1) A monopoly always operates in the inelastic portion of its demand curve 2) A specific tax imposed on a monopolist may increase the price by more than the tax 3) The optimal patent length is equal to 20 years. 4)The telephone is an example of a product with network externalities.
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