5 Written questions
5 Matching questions
- What are charcteristics fo a monopoly?
- What is another name for economies of scale?
- Is a natural monopoly illegal?
- In a perfectly competitive mkt. if (price)AR >AVC or equal to what should the firm do?
- In a monopoly what is equal to price?
- a AR/Average Revenue
- b continue business
- c No
- d 1.One seller-firm and the industry are the same2.Unique product/no substitutes3.major barriers to mkt.entry4.Price Makers who pick price that will max profits5. downward sloping demand
- e Economies of Mass production
5 Multiple choice questions
- delivery of first-class mail
- Produce the quantity where its marginal cost equals its marginal revenue
- It is at the point where marginal revenue equals marginal cost (MR=MC) pg. 208)
- Whe it was created by the government
5 True/False questions
In economies of scale why can't a new firm compete even if they try? → only one firm can survive
Is selling cheaper in bulk a price discrimination? → Selling the same product to different buyers at different prices (ex: discounts for the elderly)
If the monoplist increases output, what will the price do? → The price will fall.
In a perfectly competitive mkt. a firm oculd be doing what in the shortrun? → Company is generating economic losses
Where do monoplys set price? → Ability to control output nad price