question
A pure monopolist is producing an output such that ATC = $4, P = $5, MC = $2, and MR = $3. This firm is realizing
answer
an economic profit that could be increased by producing more output.
question
Refer to the graphs of D and MR for a monopolist. Why is the MR curve inside the demand curve for a monopolist? wrong
answer
Monopolists do not produce where MR = MC
question
Refer to the diagram. At the profit-maximizing level of output, the firm will realize
answer
an economic profit of ABHJ
question
Why is a Monoploist unable to charge whatever price it wants?
wrong
wrong
answer
it faces a downsloping demand curve.
question
Network effects and simultaneous consumption tend to foster the development of
answer
monoploy power
question
In the long run, a pure monopolist will maximize profits by producing that output at which marginal cost is equal to
answer
marginal revenue.
question
The supply curve for a monopolist is
answer
nonexistent
question
Which of the following is incorrect? Imperfectly competitive producers
answer
do not compete with one another.
question
Refer to the graphs of D and MR for a monopolist. Which of the following statements is true?
answer
A price cut from P1 to P2 would lead to an increase in the amount of dollars consumers spend on the product.
question
Pure monopolists may obtain economic profits in the long run because
answer
of barriers to entry.
question
If a monopolist were to produce in the inelastic segment of its demand curve,
answer
the firm would not be maximizing profits.
question
Price discrimination refers to
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the selling of a given product to different customers at different prices that do not reflect cost differences.
question
X-inefficiency refers to a situation in which a firm
answer
fails to achieve the minimum average total costs attainable at each level of output.
question
Refer to the graphs of D and MR for a monopolist. We know that to maximize profits the firm will set a price
answer
above P2.
question
Assume a pure monopolist is currently operating at a price-quantity combination on the inelastic segment of its demand curve. If the monopolist is seeking maximum profits, it should
wrong
wrong
answer
charge a higher price.
question
Which of the following is correct?
answer
A purely competitive firm is a "price taker," while a monopolist is a "price maker."
question
Which of the graphs above would reflect a Monopolist in the long run? wrong
answer
b only
question
Refer to the diagram. At the profit-maximizing level of output, total cost will be
answer
0BHE.
question
In which one of the following market models is X-inefficiency least likely to be present?
answer
pure competition
question
Refer to the long-run cost diagram for a firm. If the firm produces output Q 2 at an average cost of ATC 3, then the firm is
answer
producing that output with the most efficient combination of inputs and is realizing all existing economies of scale.
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