5 Written questions
5 Matching questions
- In a perfectly competitive mkt. if TR<TC what is happening?
- In what are of elasticity of demand curve will a monoploist want to operate?
- A monopoly like perfect competition mazimizes profits at a point where MR=MC? T or F
- A monopoly firm can sell as much as it wants at any price if likes? T or F
- a In some price and quantity region within the elastic region of elasticisty but.
- b False
- c Company is generating economic losses
- d True
- e An exclusive right of inventors to produce and sell a new product or machine for 20 years from the time of application
5 Multiple choice questions
- Original purchaser cannot resale product because their is no market for it:resale is impossible
- P > MR and/or MR < P
- When MR=MC
- limits the price that a monopoist is allowed to charge
5 True/False questions
In a monopoly what are the barriers to entry? → 1.Legal barriers-franchising, licensing, patents 2.Economies of Scale3. Contorl of important inputs4. pricing and other strategic barriers
A firm in a perfectly competitive industry has what kind of demand curve? → perfectly elastic demand curve
A demand curve faced by a monopolist is the same as the MR curve. T or F → this is false
Where is profit maximizing output on a graph of a monopoly? → It is at the point where marginal revenue equals marginal cost (MR=MC) pg. 208)
Are monopolys efficient? → NO, because the monopoly will produce less so they can charge a higher price.