FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 8: Monopoly, Oligopoly, and Monopolistic Competition

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 51

Multiple Choice

Review LaterAdd Note

Review Later

Both the perfectly competitive firm and the monopolist find that:

A) price and marginal revenue are the same.
B) they can sell all they want to at the market price.
C) it is best to expand production until the benefits and costs of the last unit produced are equal.
D) price is less than marginal revenue.

E) None of the above
F) A) and C)

Correct Answer

verified

Show Answer

Question 52

Multiple Choice

Review LaterAdd Note

Review Later

The hurdle method of price discrimination usually _____ consumer surplus and _____ producer surplus.

A) decreases;increases
B) increases;decreases
C) decreases;decreases
D) increases;increases

E) A) and B)
F) B) and C)

Correct Answer

verified

Show Answer

Question 53

Multiple Choice

Review LaterAdd Note

Consider an industry with two firms producing similar products. Mega Corp's total costs are TC = $5,000 + 100 × Quantity. Big Inc's total costs are TC = $4,000 + 200 × Quantity. Refer to the information given above.When each firm produces 8 units _____ has lower costs,and when each firm produces 12 units _____ has lower costs.

Price-setters face:

Consider an industry with two firms producing similar products. Mega Corp's total costs are TC = $5,000 + 100 × Quantity. Big Inc's total costs are TC = $4,000 + 200 × Quantity. Refer to the information given above.If each firm produces 10 units,Mega Corp will have total costs of _____ and Big Inc will have total costs of _____.

A monopolist calculates its marginal revenue to be $15 and marginal cost to be $16.The firm:

The profit maximizing rule P = MC applies to:

When a perfect competitor sells additional units,__________,and when a monopolist sells additional units,___________.

A firm is most likely to experience economies of scale if it has _____ start up costs and ______ variable costs.

For all firms,the additional revenue collected from the sale of one additional unit of output is:

In exchange for a share in the revenues earned on campus,State U has granted CheapFizz the exclusive right to sell soft drinks in the student union and in vending machines on campus.Prior to the deal,three soft drink companies sold beverages on campus;now no other soft drink company is allowed to sell its products on campus or at university events. Refer to the information above.The beneficiaries of this deal are _______.

A consumer goes to purchase a TV advertised for $300.As he is checking out,the clerk informs him of a $20 rebate offer for the TV,which he fills out and receives in 3 months.One can infer that the consumer had:

Imagine that you are an entrepreneur,making designer t-shirts in your garage.Your accountant has estimated that your firm's total costs can be expressed by the function TC = 300 + 10 × Q,where Q represents the number of t-shirts you make. Refer to the information given above.If you make 1,000 t-shirts,your average total cost is _______.

You would expect to see more mail-in rebate coupons being offered at:

Campus Bookstore is the only textbook supplier in the town,a profit-maximizing business.The table below represents the reservation prices for the eight students enrolled in the class for which this book is required. $\begin{array} { c c } \text { Customer } & \begin{array} { c } \text { Reservation Price } \\\text { (\$/book) }\end{array} \\\mathrm { Q } & 60 \\\mathrm { R } & 54 \\\mathrm {~S} & 48 \\\mathrm {~T} & 42 \\\mathrm { U } & 36 \\\mathrm {~V} & 30 \\\mathrm {~W} & 24 \\\mathrm { X } & 18\end{array}$ Assume that the marginal and average total cost for each book is $12. If the bookstore can charge two different prices for this book,the economic profit for the bookstore is ______.

In order to sell another unit,an imperfectly competitive firm must:

This graph illustrates the demand faced by a firm. Refer to the figure above.If the monopolist decreases price from $14 to $12,its total revenue will ______.

Pure monopoly exists when:

Imagine that you are an entrepreneur,making designer t-shirts in your garage.Your accountant has estimated that your firm's total costs can be expressed by the function TC = 300 + 10 × Q,where Q represents the number of t-shirts you make. Refer to the information given above.If you make 100 t-shirts,your average total cost is _______.

A firm that doubles its use of inputs to produce ______ output has constant returns to scale.