1) The "Profit-Max/Loss-Min/Shutdown Rule" applies to:
Group of answer choices
Pure Monopoly only
Perfect Competition only
Most market structures
All market structures
3) A firm in a monopoly market structure always operates at an economic profit.
Group of answer choices
True
False
4) Comparing monopoly and competitive market structures, "Deadweight Loss" refers to:
Group of answer choices
Underground markets developing to supply the monopoly good.
Shortages caused by high monopoly pricing.
The production gap resulting from under-allocation of resources.
Surpluses caused by monopoly underproduction.
5) In order to engage in price discrimination, which of the following must be true?
Group of answer choices
Market can be segmented
Firm has monopoly power
All of these
Goods cannot be resold
6) Suppose society decides a monopoly must produce at an allocatively efficient level. Therefore it regulates the market so that the market price is equal to marginal cost (P = MC), we call this the:
Group of answer choices
Fair-Return Price
Socially Optimal Price
Social Construct Price
Monopoly Market Price
7) Suppose a society does not wish to be forced to subsidize a monopoly producing at an allocatively efficient level. However, they are also unwilling to allow the monopoly to set its own production level. This "Fair-Return Price" level occurs when:
Group of answer choices
P = MC
MR = MC
P = MR
P = ATC
8)
Since firms that are not in perfect competition face downward-sloping demand curves, we know that to increase sales quantity they must lower prices. As a result:
Group of answer choices
Product Price is less than Marginal Revenue
Price and Revenue are no longer related
Price and Revenue are equal to each other
Marginal Revenue is less than Product Price
9)
Even if their business costs are identical, Monopoly market structures generally produce fewer goods and services than a business in a Purely Competitive market. However, business costs for a monopoly market structure are usually very different from the competitive model for variety of reasons.
Which of the following does NOT affect business costs in a monopoly market?
Group of answer choices
Higher Average Wages
Rent-Seeking Expenses
Perfectly Elastic Demand
Economies of Scale
1. All market structures
Explanation: These rules are applicable for all market structures.
3. True
Explanation: A monopoly has market power and it always operates in economic profit.
4. The production gap resulting from under-allocation of resources.
Explanation: Under production takes place in an economy as compared to perfect competition.
5. All of these
Explanation: All of the factors are required for price discrimination.
1) The "Profit-Max/Loss-Min/Shutdown Rule" applies to: Group of answer choices Pure Monopoly only Perfect Competition only...
The "Profit-Max/Loss-Min/Shutdown Rule" applies to: Group of answer choices Pure Monopoly only Perfect Competition only Most market structures All market structures
Suppose society decides a monopoly must produce at an allocatively efficient level. Therefore it regulates the market so that the market price is equal to marginal cost (P = MC), we call this the: Group of answer choices Fair-Return Price Socially Optimal Price Social Construct Price Monopoly Market Price
Suppose a society does not wish to be forced to subsidize a monopoly producing at an allocatively efficient level. However, they are also unwilling to allow the monopoly to set its own production level. This "Fair-Return Price" level occurs when: Group of answer choices P = MC MR = MC P = MR P = ATC
Comparing monopoly and competitive market structures, "Deadweight Loss" refers to: Group of answer choices Underground markets developing to supply the monopoly good. Shortages caused by high monopoly pricing. The production gap resulting from under-allocation of resources. Surpluses caused by monopoly underproduction.
how would you fill out this graph? Perfect Competition Competition Monopolistic Monopoly Oligopoly Goal of firmsMaximize Profit Rule for maximizing profit MR-MC Can earn economic profits in the short run? Yes Can earn economic profits in the long run? Yes Price taker? Sometimes P2MC Sometimes Price & MC Produces welfare maximizing output? Number of firms? Few 3. (1 point) Consider a world where only blank t-shirts are produced. Draw hypothetical Demand faced by a firm, MR, MC, and ATC curves...
I just need help with comparing monopoly to perfect competition, which statement are true Use the cost and revenue data to answer the questions. Price 90 80 Quantity 15 30 45 60 75 70 Total revenue 1350 2400 3150 3600 3750 3600 Total cost 900 1500 2250 3150 4200 5400 60 50 9040 If the firm is a monopoly, what is marginal revenue when quantity is 30? MR = $ 70 What is marginal cost when quantity is 60? MC...
1) Which of the following market structures are found most often in an economy? Group of answer choices a Oligopoly and Monopoly b Monopolistic Competition and Oligopoly c Perfect Competition and Monopolistic Competition d Perfect Competition and Monopoly 2) In a perfectly competitive (price-taking) market, which of the following is false? Group of answer choices a The market price will equal marginal revenue b As prices increase, each firm will be willing to produce more c Firms will produce the...
7. How is monopoly different from perfect competition? 8. What is a barrier to entry? Give some examples. 9. What is a natural monopoly? 11. What is predatory pricing? 14. In what sense is a natural monopoly “natural”? 15. How is the demand curve perceived by a perfectly competitive firm different from the demand curve perceived by a monopolist? 16. How does the demand curve perceived by a monopolist compare with the market demand curve? 17. Is a monopolist a...
POM CUCI 1. Because of monopoly, consumers experience___than they do with perfect competition. A. more choices B. larger quantities C. higher quality D. higher prices 2. Which statement concerning monopoly is TRUE? A. Monopoly firms are always larger than are perfectly competitive firms. B. A monopoly has no rivals. C. Barriers to entry do not prevent other firms from entering a monopolized industry. D. Monopolists produce more output than does a competitive market with the same demand and cos structure....
Recall that in perfect competition a firm’s demand curve is a horizontal line drawn at the market price level and that P=MR. With this in mind, based on the figure below, total costs are: Group of answer choices $720 $660 $576 $432 2. Refer to the graph below. Total profit is: Groupof answer choices $243 $144 $288 $132 3. Refer to the diagram below. Based on the information illustrated in this graph, which of the following is an accurate statement?...