5 Written questions
5 Matching questions
- Is selling cheaper in U.S. then in RUssia price discrimination?
- When is a mon0poly not illegal?
- Where is profit maximizing output on a graph of a monopoly?
- Why can't a firm in a perfectly competitive industry charge a price above the market-clearing price?
- a Yes
- b An exclusive right of inventors to produce and sell a new product or machine for 20 years from the time of application
- c Numerous competitors produce the same product and charge the MARKET price
- d Whe it was created by the government
- e It is at the point where marginal revenue equals marginal cost (MR=MC) pg. 208)
5 Multiple choice questions
- negatively sloped
- NO they do not
- Where P=MC on Demand curve
- Company is generating economic losses
5 True/False questions
Monopoly power → Original purchaser cannot resale product because their is no market for it:resale is impossible
What is another name for zero economic profit? → Selling the same product to different buyers at different prices (ex: discounts for the elderly)
What happens to price in the longrun if firms are making economic losses in a perfectly competitive mkt.? → Firms leave the industry and the price goes up
If the monoplist increases output, what will the price do? → The price will fall.
WHY do costs differ between perfect competion industry and monpoly industry? → P x Q