5 Written Questions
5 Matching Questions
- A perfectly competitive firm should always...
- Where is the MR curve in relation to the damnd curve on a monopoly graph?
- When does a natural monopoly exist?
- What are the two major public policies toward natural monopolies:
- Where on a graph doe sa monoploly set price to maximize profit?
- a Produce the quantity where its marginal cost equals its marginal revenue
- b public ownership or regulation
- c MR curve is always below the demand curve
- d Whne a large firm can produce a product at a lower per unit cost than can a smaller firm.
- e Price minus ATC=profit per unit
5 Multiple Choice Questions
- Seperation of buyers into distinct classes (ex: elderly, children, business travelers, non-business travelers
- Above MC yet in the elastic region
- a smaller quantity,charges a higher price, and earns a positive economic profit
- only one firm can survive
5 True/False Questions
Where is profit maximizing price in a monopoly? → It is at the point where marginal revenue equals marginal cost (MR=MC) pg. 208)
In a perfectly competitive mkt. if TR>TC what is happening? → Company is generating economic profits
How do you figure profit in a monopoly? → TR - TC or (P- ATC) xQ
A firm that is producing at the lowest possible average cost is always: → productively efficient
What is price descrimination? → Yes