5 Written Questions
5 Matching Questions
- In what are of elasticity of demand curve will a monoploist want to operate?
- Where is profit maximizing output on a graph of a monopoly?
- Is selling cheaper in bulk a price discrimination?
- If the monoplist increases output, what will the price do?
- At what point on the ATC curve is equilibrium?
- a At the lowest point on the ATC curve.
- b In some price and quantity region within the elastic region of elasticisty but.
- c Yes
- d The price will fall.
- e It is at the point where marginal revenue equals marginal cost (MR=MC) pg. 208)
5 Multiple Choice Questions
- Whne a large firm can produce a product at a lower per unit cost than can a smaller firm.
- More firms enter and this pushes the price down
- no reale, monoploy power, market segregation
- Monopolys charge a higher price and customers are willing to pay it due to low elasticity of demand.
- the good is supplied by the government or by a firm owned by the government
5 True/False Questions
A monopoly restricts output and charges higher price relative to what would occur if a market were perfectly competitive. T or F → behave more like a perfectly competitive firm
At what point of Demand curve does a monopoly operate? → Downward sloping
When is a mon0poly not illegal? → No
In a monopoly why does the MR curve lie below the Demand curve? → 1.Legal barriers-franchising, licensing, patents 2.Economies of Scale3. Contorl of important inputs4. pricing and other strategic barriers
A monopoly like perfect competition mazimizes profits at a point where MR=MC? T or F → False