5 Written questions
5 Matching questions
- At what point on demand curve is fair market price for a monopoly?
- At what point on the ATC curve is equilibrium?
- A perfectly competitive firm should always...
- Does a monopoly set price to maximize profit?
- When is a mon0poly not illegal?
- a At the lowest point on the ATC curve.
- b Where P=ATC on Demand curve
- c Whe it was created by the government
- d Produce the quantity where its marginal cost equals its marginal revenue
- e Yes they do
5 Multiple choice questions
- Zero economic profits (normal rate of return) this is where MR=MC
- Selling the same product to different buyers at different prices (ex: discounts for the elderly)
- Ability to control output nad price
- De Beers
- When MR=MC
5 True/False questions
In a perfectly competitive mkt. if TR<TC what is happening? → Company is generating economic profits
monopolist will expand production only within the elastic portion of demand curve (why? → behave more like a perfectly competitive firm
In a monopoly what is equal to price? → Above MC yet in the elastic region
In what are of elasticity of demand curve will a monoploist want to operate? → In some price and quantity region within the elastic region of elasticisty but.
what are the characteristics of pure competition (perfect competition)? → large number of buyers and sellers, homogenous (standardized) product, no barriers to new firms entering mkt., firms are price takers and have a perfectly elastic demand.