5 Written questions
5 Matching questions
- At what point on demand curve is fair market price for a monopoly?
- Where is the MR curve in relation to the damnd curve on a monopoly graph?
- A firm sells grapefuit at $1.50 a pound what is the firms marginal revenue?
- A firm that is producing at the lowest possible average cost is always:
- compa red to a fir m und er PC, a m onopo list produces
- a productively efficient
- b a smaller quantity,charges a higher price, and earns a positive economic profit
- c MR curve is always below the demand curve
- d Where P=ATC on Demand curve
- e equals $1.50 because in a perfectly comp. industry P=AR=MR=D
5 Multiple choice questions
- not earn an economic profit but be allocatively efficient and productively efficient
- More firms enter and this pushes the price down
- To reduce costs.
- Selling the same product to different buyers at different prices (ex: discounts for the elderly)
- AR/Average Revenue
5 True/False questions
A monopoly firm can sell as much as it wants at any price if likes? T or F → True
What does the U.S. Postal service have a monopoly on? → limits the price that a monopoist is allowed to charge
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 laws make monopolys illegal? → Anti-Trust laws
Assume that a perfectly competive firm that produces widgets is in long-run equilibrium. Then suddenly the market demand for widgets increases. The firm will → Zero economic profits (normal rate of return) this is where MR=MC