5 Written Questions
5 Matching Questions
- What is equal to Price in a perfectly competitive mkt.?
- Where do monoplys set price?
- Is a stock market a perfectly competitive market?
- Where on a graph doe sa monoploly set price to maximize profit?
- How do you figure total cost in any industry?
- a YES
- b P=MR=AR=D
- c Price minus ATC=profit per unit
- d Above MC yet in the elastic region
- e ATC x Q
5 Multiple Choice Questions
- perfect (pure) competition, monopoly,monopolistic competition, oligopoly
- economies of scale, x-inefficiency, the need for monopoly preserving expenditures, and the VERY long-run prespective
- An exclusive right of inventors to produce and sell a new product or machine for 20 years from the time of application
- MR=MC Profit is maximized by producing the quantity for which the marginal cost is equal to the marginal revenue
5 True/False Questions
What are welfare losses? → the loss to consumers is greater than the gain in profits for the monopoly and total surplus is less under monopoly than under perfect competition
In a monopoly what are the barriers to entry? → the loss to consumers is greater than the gain in profits for the monopoly and total surplus is less under monopoly than under perfect competition
A firm that is producing at the lowest possible average cost is always: → productively efficient
compa red to a fir m und er PC, a m onopo list produces → a smaller quantity,charges a higher price, and earns a positive economic profit
In a perfectly competitive mkt. if TR=TC what is happening? → Company is generating economic profits