Question

rige of 5. total revenge equals: 29. Refer to Figure 7-1. With reference to Graph B. a A) S150. B) $250. C) $300. D) $200. 30. A monopolist is able to maximize its profits by A) setting the price at the level that will maximize its per-unit profit B) producing output where MRMC and charging price along the demand curve. C) setting output at MR-MC and setting price at the demand curve's highest point D) producing maximum output where price is equal to its marginal cost. 31. has occurred if a government-owned firm becomes privately owned. A) Privatization B) Nationalization C) Deregulation D) Regulatory capture 32. In microeconomic terms, the ability of a good or a service to satisfy wants is called A) opportunity cost. B) utility C) utility maximization. D) profit potential 33. If a solar panel manufacturer wants to look at its total costs of production in the short run, which of the following would provide a useful starting point? A) divide total costs into two categories: variable costs that can't be changed in the short run and fixed costs that can be B) divide the total costs of production by the quantity of output C) divide the variable costs of production by the quantity of output D) divide total costs into two categories: fixed costs that can't be changed in the short run and variable costs that can be

Answer 1

(29) Figure 7-1 is missing.

(30) (B)

The monopolist equates MR with MC, and charges the corresponding price reading vertically upward from the demand curve.

(31) (A)

When a nationalized/government-owned firm is sold to a private entity, the firm becomes privatized.

(32) (B)

Utility is the ability to satisfy wants and measures satisfaction derived from consumption of a good.

(33) (D)

Short run total cost = Fixed cost (constant and independent of output) + Variable cost (that changes with output)