quiz 6 econ 202

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Posted on

March 14th, 2023

question

A market in which there are many firms each selling differentiated products is most likely a ___ market.

answer

Monopolistically competitive.

question

In general, firms in a cartel:

answer

agree to charge the price the monopolist would charge.

question

Price discrimination is related to elasticity because:

answer

the firm can increase revenues by charging customers with elastic demands lower prices and charging customers with inelastic demands higher prices.

question

When oligopolists collude the results are generally

answer

smaller output and higher price

question

In maximizing profits, a monopolist will charge a price that is

answer

greater than marginal cost

question

Restaurants, car dealerships, clothing stores, and music stores are examples of industries in which firms differentiate their products by offering them at more locations. This is an example of a ___ market.

answer

Monopolistically competitive.

question

The economic inefficiency of a monopolist can be measured by

answer

the deadweight loss

question

price discrimination is when a firm charges:

answer

different prices for the same goods to different consumers.

question

A monopolistically competitive firm is producing at an output level in the short run where average total cost is $3.50, price is $3.00, marginal revenue is $1.50 and marginal cost is $1.50. This firm is operating

answer

With an economic loss in the short run.

question

A benefit to consumers of monopolistically competitive markets is that:

answer

consumers have a variety of products from which to choose

question

if short- run economic profits are greater than zero for firms in a monopolically competitive market, in the long-run we expect:

answer

competing firms to enter the market and sell similar products, competing profits away.

question

The firms with any market power marginal revenue curve is

answer

downward sloping and twice as steep as demand

question

which of the following is an assumption of the theory of oligopoly?

answer

firms produce and sell either homogeneous or differentiated products.

question

In what industry structure is the mutual interdependence of the firms an important feature?

answer

Oligopoly

question

monopolistically competitive firms differentiate their products by:

answer

all of the above

question

which of the following conditions would prevent price discrimination?

answer

the ability to prevent low-price customers from reselling to high-price customers.

question

What are its total profits if the senior discount police of $7 senior price and a $10 non-senior price?

answer

$4,060

question

The above monopolist would maximize its profit by charging a price of:

answer

$35

question

The dead weight loss associated with the monopoly would be represented by the area:

answer

DADE

1 of 19

question

A market in which there are many firms each selling differentiated products is most likely a ___ market.

answer

Monopolistically competitive.

question

In general, firms in a cartel:

answer

agree to charge the price the monopolist would charge.

question

Price discrimination is related to elasticity because:

answer

the firm can increase revenues by charging customers with elastic demands lower prices and charging customers with inelastic demands higher prices.

question

When oligopolists collude the results are generally

answer

smaller output and higher price

question

In maximizing profits, a monopolist will charge a price that is

answer

greater than marginal cost

question

answer

Monopolistically competitive.

question

The economic inefficiency of a monopolist can be measured by

answer

the deadweight loss

question

price discrimination is when a firm charges:

answer

different prices for the same goods to different consumers.

question

answer

With an economic loss in the short run.

question

A benefit to consumers of monopolistically competitive markets is that:

answer

consumers have a variety of products from which to choose

question

if short- run economic profits are greater than zero for firms in a monopolically competitive market, in the long-run we expect:

answer

competing firms to enter the market and sell similar products, competing profits away.

question

The firms with any market power marginal revenue curve is

answer

downward sloping and twice as steep as demand

question

which of the following is an assumption of the theory of oligopoly?

answer

firms produce and sell either homogeneous or differentiated products.

question

In what industry structure is the mutual interdependence of the firms an important feature?

answer

Oligopoly

question

monopolistically competitive firms differentiate their products by:

answer

all of the above

question

which of the following conditions would prevent price discrimination?

answer

the ability to prevent low-price customers from reselling to high-price customers.

question

What are its total profits if the senior discount police of $7 senior price and a $10 non-senior price?

answer

$4,060

question

The above monopolist would maximize its profit by charging a price of:

answer

$35

question

The dead weight loss associated with the monopoly would be represented by the area:

answer

DADE

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