question
which of the following characteristics determine whether or not a firm will earn long run economic profit?
answer
C. Barriers to entry
question
A single price monopolist marginal revenue is?
answer
B. less than its price
question
Monopolies are in efficient compared to a perfectly competitive firms because monopolies
answer
D. Charge a price greater than marginal cost
question
If the monopolist chooses to maximize total revenue rather than total profit, which combination of price and output will be chosen
answer
C. P3, Q3
Bc MR at 0
Bc MR at 0
question
If a perfectly competitive Industry were monopolized without any changes in cost conditions, the price and quantity
answer
P increase, Q decrease
question
Generally, monopolies are considered inefficient because they
answer
lead to an under allocation of resources in the affected market
question
The economic profit maximization monopolistic is given by the area
answer
RULI
question
The price of an airline ticket is typically lower if the traveler buys the tickets several weeks before departure date rather than on the day of departure. This pricing strategy based on assumes that
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Traveler demand becomes less elastic as a departure date approaches
question
Price discrimination occurs when
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Differences in a products price do not reflect differences in costs of production
question
Which of the following is necessary for a firm to practice price discrimination
answer
the firm can prevent resale of its goods.
question
If the monopolist could engage in perfect price discrimination, the monopolist total output and price charge for the last unit of output sold would be
answer
Q2, P3
question
Which of the following enables a seller to capture the entry surplus in a market
answer
Perfect price discrimination
question
Which of the following statements correctly identifies a difference between perfect and monopolistic competition
answer
In perfect competition all products are exactly the same but in monopolistic competition there are slightly different products
question
Industry consist of 100 small firms, and the largest firm accounts for only 2% of sales. The industry described
answer
Monopolistic competitive firms
question
All of the following characterize book perfectly competitive in monopolistic except
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Firms can affect the selling price of their product
question
Over the past five years, 50 new restaurants have opened, 30 closed currently there are 110
answer
C. Monopolistic, low barries to entry, zero LR profit
question
A well known fast food franchise substantially increases the price of its hamburgers and loses only some of its customers. Why has a franchise not lost all customers
answer
Hamburgers are differentiated
question
Which of the following will tend to make the demand for a product more elastic
answer
New firms which produce similar products enter the industry.
question
Interdependence among firms is a characteristic primarily associated
answer
Oligopoly
question
Which of the following best explains why it is difficult to maintain lasting collusive agreement
answer
Each firm realizes that it's profits would increase if it were the only firm to violate the collusive agreement by increasing its production slightly
question
Game theory is a useful model to explain behavior of firms in the market when firms are
answer
interdependent
question
Pam and tara run to competing lemonade stands. According to the payoff matrix
answer
Pam high price, Tara low price
question
If Locke chooses to Charge low price, the best course of action for star would be to charge the?
answer
Low price and earn a profit of 40
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