question
D
answer
The marginal revenue curve for a monopolist:
A. is a straight line, parallel to the horizontal axis.
B. rises at first, reaches a maximum, and then declines.
C. is a straight, upsloping curve.
D. becomes negative when output increases beyond some particular level.
A. is a straight line, parallel to the horizontal axis.
B. rises at first, reaches a maximum, and then declines.
C. is a straight, upsloping curve.
D. becomes negative when output increases beyond some particular level.
question
B
answer
Pure monopolists may obtain economic profits in the long run because:
A. marginal revenue is constant as sales increase.
B. of barriers to entry.
C. of advertising.
D. of rising average fixed costs.
A. marginal revenue is constant as sales increase.
B. of barriers to entry.
C. of advertising.
D. of rising average fixed costs.
question
D
answer
The non discriminating monopolist's demand curve:
A. Coincides with its marginal revenue curve.
B. Is perfectly elastic.
C. Is perfectly inelastic.
D. Is less elastic than a purely competitive firm's demand curve.
A. Coincides with its marginal revenue curve.
B. Is perfectly elastic.
C. Is perfectly inelastic.
D. Is less elastic than a purely competitive firm's demand curve.
question
D
answer
For an imperfectly competitive firm:
A. total revenue is a straight, upsloping line because a firm's sales are independent of product price.
B. the marginal revenue curve lies below the demand curve because any reduction in price applies only to the extra unit sold.
C. the marginal revenue curve lies above the demand curve because any reduction in price applies to all units sold.
D. the marginal revenue curve lies below the demand curve because any reduction in price applies to all units sold.
A. total revenue is a straight, upsloping line because a firm's sales are independent of product price.
B. the marginal revenue curve lies below the demand curve because any reduction in price applies only to the extra unit sold.
C. the marginal revenue curve lies above the demand curve because any reduction in price applies to all units sold.
D. the marginal revenue curve lies below the demand curve because any reduction in price applies to all units sold.
question
A
answer
Confronted with the same unit cost data, a monopolistic producer will charge:
A. a higher price and produce a smaller output than a competitive firm.
B. a higher price and produce a larger output than a competitive firm.
C. a lower price and produce a smaller output than a competitive firm.
D. the same price and produce the same output as a competitive firm.
A. a higher price and produce a smaller output than a competitive firm.
B. a higher price and produce a larger output than a competitive firm.
C. a lower price and produce a smaller output than a competitive firm.
D. the same price and produce the same output as a competitive firm.
question
D
answer
The profit-maximizing output of a pure monopoly is not socially optimal because in equilibrium:
A. Price equals minimum average total cost.
B. Marginal revenue equals marginal cost.
C. Marginal cost exceeds price.
D. Price exceeds marginal cost.
A. Price equals minimum average total cost.
B. Marginal revenue equals marginal cost.
C. Marginal cost exceeds price.
D. Price exceeds marginal cost.
question
C
answer
In the long-run equilibrium a monopolistically competitive producer achieves:
A. Both productive efficiency and allocative efficiency.
B. Productive efficiency, but not allocative efficiency.
C. Neither productive efficiency nor allocative efficiency.
D. Allocative efficiency, but not productive efficiency.
A. Both productive efficiency and allocative efficiency.
B. Productive efficiency, but not allocative efficiency.
C. Neither productive efficiency nor allocative efficiency.
D. Allocative efficiency, but not productive efficiency.
question
C
answer
Monopolistically competitive industries are inefficient because:
A. they realize diseconomies of scale.
B. monopolistically competitive sellers engage in misleading advertising.
C. monopolistically competitive industries are overpopulated with firms whose plants are underutilized.
D. advertising costs slow technological advance and product development.
A. they realize diseconomies of scale.
B. monopolistically competitive sellers engage in misleading advertising.
C. monopolistically competitive industries are overpopulated with firms whose plants are underutilized.
D. advertising costs slow technological advance and product development.
question
A
answer
The larger the number of firms and the smaller the degree of product differentiation the:
A. more elastic is the monopolistically competitive firm's demand curve.
B. larger will be the monopolistically competitive firm's fixed costs.
C. greater the divergence between the demand and the marginal revenue curves of the monopolistically competitive firm.
D. less elastic is the monopolistically competitive firm's demand curve.
A. more elastic is the monopolistically competitive firm's demand curve.
B. larger will be the monopolistically competitive firm's fixed costs.
C. greater the divergence between the demand and the marginal revenue curves of the monopolistically competitive firm.
D. less elastic is the monopolistically competitive firm's demand curve.
question
C
answer
In the long-run, a profit-maximizing monopolistically competitive firm sets it price:
A. equal to marginal cost.
B. below marginal cost.
C. above marginal cost.
D. equal to marginal revenue.
A. equal to marginal cost.
B. below marginal cost.
C. above marginal cost.
D. equal to marginal revenue.
question
C
answer
The less elastic a monopolistic competitor's long-run demand curve, the:
A. less its excess capacity.
B. higher its long-run profits.
C. higher its price relative to that of a pure competitor having the same cost curves.
D. lower its average total cost at its equilibrium level of output.
A. less its excess capacity.
B. higher its long-run profits.
C. higher its price relative to that of a pure competitor having the same cost curves.
D. lower its average total cost at its equilibrium level of output.
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
