Question

30. The change in total revenue that results fr A. Marginal cost. B, Marginal revenue C. Marginal profit. D. Total revenue erease in qipntity sold is: 31. For a monopolist, marginal revenue is A. Equal to price, just as it is for a perfectly competitiy B. Constant up to the rate of output that maximizes tot i C. Always less than price, after the first unit. D. The same as the demand curve. loral 32. For a monopolist, after the first unit of outpu A. Constant B. Increasing. C. Less than price. D. Greater than marginal cost. ginal revensc is always: 33. The marginal revenue of a monopolist is A. Less than price because a monopolist is a price taker B. Less than price because to sell more output the fim must reduce the price on all units sold. C. Above price because the firm is a price setter D. Always equal to price 34. Suppose a market is dominated by three firms. This type of market stalled: A. Perfect competition. B. A monopoly C. Monopolistic competition. D. An oligopoly 35. The market structure of the U.S, soft drink industry is most likely A. Perfectly competitive. B. A monopoly C. Monopolistically competitive. D. An oligopoly 36. An industry in which one firm can achieve economies of scale over the entire range of output is referred to as: A. A natural monopoly B. Perfectly competitive. C. A neutral monopoly D. A contestable market.

Answer 1

30) The change in total revenue due to one unit increase in output is called Marginal revenue. Marginal Revenue=Total revenue(n units) - Total revenue( n-1 units)

31) For a monopolist, marginal revenue is always less than price after the first unit because the demand curve faced by the monopolist is downward sloping.

32) For a monopolist after the first unit of output, marginal revenue is less than price ecause the demand curve faced by the monopolist is downward sloping.

33) Marginal revenue of monopolist is less than price because to sell more output the monoplist has to reduce price on all units.

34) A market dominated by three firms is called an oligopoly.

35) The market structure for US soft drink industry is most likely an oligopoly.

36) An industry in which a single firm can achieve economies of scale over entire range of output is called natural monopoly.