refer to the following table that shows the short-run production relationship and the product demand schedule for a firm.

$\begin{array}{ccc}
\text { Labor } & \text { Output } & \text { Output Price } \
\hline
1 & 10 & \$ 20.00 \
2 & 15 & 19.00 \
3 & 19 & 18.00 \
4 & 22 & 17.00 \
5 & 24 & 16.00 \
6 & 25 & 15.00
\end{array}$
-The table indicates that:
A)the firm sells output in a perfectly competitive market
B)the firm is a monopolist
C)the firm hires labor in a perfectly competitive market
D)the firm is a monopsonist

Question

refer to the following table that shows the short-run production relationship and the product demand schedule for a firm.

$\begin{array}{ccc}
\text { Labor } & \text { Output } & \text { Output Price } \
\hline
1 & 10 & \$ 20.00 \
2 & 15 & 19.00 \
3 & 19 & 18.00 \
4 & 22 & 17.00 \
5 & 24 & 16.00 \
6 & 25 & 15.00
\end{array}$
-The table indicates that:
A)the firm sells output in a perfectly competitive market
B)the firm is a monopolist
C)the firm hires labor in a perfectly competitive market
D)the firm is a monopsonist

Quizplus · Accepted Answer

The table shows that as output increases, the price of the output decreases, which is characteristic of a monopolist who faces a downward-sloping demand curve for its product. This indicates the firm has some control over the price of its output, unlike in a perfectly competitive market where firms are price takers.

Refer to the Following Table That Shows the Short-Run Production