question
Which of the following is true?
answer
MR=MC is a profit-maximizing rule for any firm.
question
Conditions that prevent the entry of new firms in a monopoly market are:
answer
Barriers to entry
question
Marginal revenue for a monopolistic is?
answer
Less than price
question
Marginal revenue is ________ in the _______ range of the demand curve, ________ in the _____ range of the demand curve and _____ where demand is unit price elastic.
answer
negative; inelastic; positive; elastic; zero
question
In the short run, a monopoly will stop producing if?
answer
P<AVC
question
A monopoly responds to an increase in marginal cost by ______ price and ____ output.
answer
increasing; decreasing
question
In a monopoly industry in the long run:
answer
entry will not occur
question
An increase in the fixed costs of a monopoly firm would _____ price and ______ quantity in the short run.
answer
Not change; not change
question
Compared to perfect competition: (Monopoly)
answer
A) Monopoly produces less at a higher price.
B) Monopoly produces where MR=MC, and a perfectly competitively firm produces where P=MC.
C) Monopoly may have economic profits in the long run, but in perfect competition in the long run economic profits are zero.
B) Monopoly produces where MR=MC, and a perfectly competitively firm produces where P=MC.
C) Monopoly may have economic profits in the long run, but in perfect competition in the long run economic profits are zero.
question
If regulation of a monopoly results in a price equal to marginal cost, but price is below average total cost:
answer
The firm will require subsidization or it will go out of business.
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
