question
Which of the following is true regarding the long run for a firm in monopolistic competition?
answer
Price equals average total cost
question
Relative to a perfect cometitive market with the same cost and demand, a single - price monopolist produces __________ output and has a ___________ price.
answer
Less, Higher
question
A single - price monopoly causes a deadweight loss because it ________
answer
Restricts its output so it is less than the efficient quantity
question
A monopoly
answer
Raises the price it can charge for its products by decreasing the quantity sold
question
Which of the following conditions would prevent price discrimination?
answer
The inability to identify those customers willing to pay more
question
Monopolists are able to price discriminate because
answer
Of differing willingness to pay amount consumers
question
A major difference between a single - price monopolist and a perfectly competitive firm is that the
answer
Monopolist's marginal revenue is less than price
question
Which one of the following statements is true?
answer
A monopolist will leave the market if it incurs an economic loss in the long run
question
The figure above shows the cost, demand, and marginal revenue curve for a monopoly. The firm ________
answer
Will produce 20 units per day
question
The unregulated, single price monopoly shown in the figure above makes a total economic profit of
answer
$200
question
A monopolist can make an economic profit in the long run because of
answer
Barriers to entry
question
Which of the following is a characteristic of monopolistic competition
answer
Several firms
question
In the short run, a firm in a monopolistic competition will produce the amount of output where it's
answer
Marginal revenue equals marginal cost and will set it's price according to the demand for the output level
question
Which of the following is not a characteristic of an Monopoly
answer
Easy entry and exit
question
For a monopoly, the market demand curve is the firms
answer
Demand curve
question
The creation of a monopoly results in the gains to
answer
Producers at the expense of consumers
question
Price discrimination takes place when a firm
answer
Charges different prices for different units of its products
question
And industry in which economies of scale allow one firm to supply the entire market at the lowest possible cost is called a
answer
Natural monopoly
question
A single price monopolist maximize profits by producing the output at which
answer
Marginal revenue equals marginal cost
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