← Microeconomics Test
5 Written Questions
5 Matching Questions
- At what point is profit maximized in a monopoly?
- Monopoly power
- At what poin in a perfectly competitive mkt. are profits maximized in the shortrun?
- What does the U.S. Postal service have a monopoly on?
- In a perfectly competitive market where is equilibrium?
- a Where marginal revenue is equal to marginal costs.
- b Zero economic profits (normal rate of return) this is where MR=MC
- c Ability to control output nad price
- d At any point UP TO where MR=MC...P will always be above MC in a monoply
- e delivery of first-class mail
5 Multiple Choice Questions
- perfectly elastic demand curve
- Economies of Mass production
- Seperation of buyers into distinct classes (ex: elderly, children, business travelers, non-business travelers
- Firms leave the industry and the price goes up
5 True/False Questions
Is selling at higher rates to business travelers price discrimination? → Yes
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
Does a monopoly firm always earn an economic profit? → NO they do not
In a monopoly what is equal to price? → Whe it was created by the government
At what point on demand curve is Socially optimal price? → Where P=MC on Demand curve