Question

I know that these have answers but I do not believe they are all correct. I also knew you can only answer 4 questions. So if one of them is already correct could you answer the ones that are wrong?

9) If a regulated monopolist has a loss when the the government should subsidize the firm. government forces it to price at its marginal cost, the firm should exit the industry. the firm should minimize its losses. the government should take over the business. 10) wheat farming Which of the following is an example of a monopolistically competitive industry? cable TV automobiles Ofast-food hamburger restaurants 21) a firm owns all of a specific resource. A natural monopoly exists when a government grants an exclusive license to a firm. a firm's scale of operation is large relative to the market. a firm has the most market power. Which of the following assumptions is associated with monopolistic competition? are many sellers but each seller is selling a slightly differentiated ct There are few sellers. There are many sellers. Each seller produces the same product. There is only one firm in the industry. 30) P MC. For a monopolistically competitive firm in the short run, at the profit-maximizing output level, P MR. P = MR = MC.

Answer 1

Answer : 9) The answer is option C.
When a firm face loss then the firm's goal is to minimize the cost. The firm exit from the market when the price is less than the average variable cost. As here the price is equal to marginal cost and the firm faces loss hence the firm should minimize it's loss. Therefore, option C is correct.

10) The answer is option D.

In monopolistically competitive industry all firms sell similar products but differentiated. Hamburger restaurants sell hamburgers but the quality and test are different in each restaurant. This means that hamburger restaurants sells differentiated products. Therefore, option D is correct.

21) The answer is option C.

Natural monopoly is a different type of monopoly. In case of natural monopoly the firm supply large relative to the market. In natural monopoly the firm always face economies of scale. As a natural monopoly firm supply large and always face economies of scale hence if a firm's operation scale is large in the market in compared to competitors then the natural monopoly exist. Therefore, option C is correct.

30) The answer is option C.

For monopolistically competitive firm the profit-maximizing output level is that output level where MR (Marginal Revenue) = MC (Marginal Cost). But the price (P) at profit maximizing output level is equal to demand. For monopolistically competitive firm the MR curve lies below that demand curve. Hence at profit-maximizing output level P > MR. Therefore, option C is correct.