Question

 

10) In the above figure, what is the profit-maximizing output and price?

 A) 8, $7

 B) 10, $8

 C) 12, $10

 D) 10, $10

 11) In the above figure, what is the price the firm receives if the output is 8?

 A) $10

 B) $2

 C) $7

 D) $8

 12) The short-run break-even price

 A) Is the price at which the firm's current liabilities are paid off?

 B) Is the price at which a firm's total revenues equal total costs?

 C) Occurs at the output at which the firm yields a below normal rate of return.

 D) Occurs at the output at which the firm yields a positive economic profit.

 13) A firm can be the sole supplier of a good and is still not a monopolist if

 A) The firm is not large.

 B) The good produced is not important to the economy.

 C) The firm is not making excessive profits.

 D) There are very close substitutes for the good.

 14) The market structure where there is a single supplier of a good or service for which there is

 no close substitute is

 A) A price searcher.

 B) A monopoly.

 C) A tariff.

 D) the most economically efficient market structure. 

Answer 1

10) Setting P=MC, Q=10 and P=10

option(D)

11) 10

option(A)

12) Break-even occurs where TR=TC

option(B)

13) There are very close substitutes for the good

option(D)

14) A monopoly

option(B)