5 Written Questions
5 Matching Questions
- In a monoply where is the market demand curve?
- a monopolist that faces a market with very elastic demand will do what?
- At what point on demand curve is Socially optimal price?
- compa red to a fir m und er PC, a m onopo list produces
- What are charcteristics fo a monopoly?
- a a smaller quantity,charges a higher price, and earns a positive economic profit
- b behave more like a perfectly competitive firm
- c It is above the MR curve and is the SAME as the demand curve because the firm and the industry are one.
- 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 Where P=MC on Demand curve
5 Multiple Choice Questions
- MR=MC Profit is maximized by producing the quantity for which the marginal cost is equal to the marginal revenue
- public ownership or regulation
- Continue operations
- earning profits, generating losses, breaking even.
- Increases income inequality
5 True/False Questions
What is price descrimination? → Yes
In a perfectly competitive mkt. if TR>TC what is happening? → the firm is earning zero economic profits and is covering explicit and implicit costs
Why are pure monoplies a rarity? → Anti-Trust laws
A firm that is producing at the lowest possible average cost is always: → To reduce costs.
WHo had/has a monopoly on diamonds? → No