question
What is the marginal revenue for the FIRM from selling the 250th unit of output?
answer
$8
question
For a price-taking firm, marginal revenue
answer
both "is the addition to total revenue from producing one more unit of output" and "is equal to price at any level of output".
question
One method of measuring the extent of a firm's market power is
answer
both "the Lerner index" and "price elasticity of demand for the firm's product".
question
In a monopoly market,
answer
the demand facing the firm is downward-sloping because it is the market demand.
question
In a monopolistically competitive market,
answer
both "a firm has market power because it produces a differentiated product" and "there are a large number of firms".
question
In a monopolistically competitive market,
answer
"firms are small relative to the total market" and "there is easy entry and exit in the market".
question
Which of the following is NOT a condition of a perfect competition?
answer
industry sales are small
question
Which of the following is not a characteristic of an increasing cost competitive industry? As the industry expands output in the long run,
answer
the equilibrium price of product remains constant in the long run.
question
What output should the firm produce?
answer
200
question
Which of the following is not a characteristic of a constant cost competitive industry? As the industry expands output in the long run,
answer
the number of firms remain constant.
question
A firm with market power will maximize profit by hiring the amount of an input at which the
answer
last unit of the input hired adds the same amount to total revenue as to total cost.
question
The figure above shows the demand and cost curves facing a price-setting firm. What is marginal revenue when output is 100 units?
answer
30
question
What do you expect to happen in the long-run?
answer
Both "Market price will decrease" and "The firm's profit will decrease".
question
Which of the following would indicate a relatively large amount of market power?
answer
low cross-price elasticity with other products
question
In a perfectly competitive market
answer
None of the choices are correct.
question
Monopolistic competition is similar to perfect competition in that
answer
there are a large number of firms.
question
Which of the following is not a characteristic of long-run equilibrium for a perfectly competitive firm?
answer
Price is greater than long-run average cost.
question
A monopolistic competitor is similar to a monopolist in that
answer
both have market power.
question
Which of the following is a characteristic of a monopoly market?
answer
All of the choices are correct.
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