Question

CO201-0088070, Microeconomics, FA-2018 Earn#3: Based onB&M Chapters 8, 9 &10 December 2018 Point Seore 20 Name: (print) Question 1 In economic t A. Maximize sales revenue. B. Maximize market share. C. Maximize D. Maximize profit. E. Maximize sales volume. benefits it provides to its customers. Answer Question 2 Marginal cost equals: A. Total cost divided by total quantity. B. The slope of the demand curve under perfect competition. C. The slope of the total product curve when the later is at its maximum. D. The change in total cost divided by the change in total output. E. The slope of the supply curve. Answer Question 3 The ordering of market structures from most market power to least market power is the ability to set its own price) is: Monopoly, monopolistic competition, oligopoly, perfect competition. competition. Monopoly, oligopoly, monopolistic competition, perfeet competition. oligopoly A. B. Oli D. Perfect competition, monopolistic competition, oligopoly, monopolv E. Monopoly, perfect competition, monopolistic competition, ol Answer

Answer 1

1)D Goal of the firm is to maximise profit and profit is maximised when MR=MC

2)D Marginal cost is the change in total cost due to change in output. Slope of TC is marginal cost

3)A monopoly has the highest market power and then monopolist then oligopoly and least competitive is perfect competition