5 Written questions
5 Matching questions
- what does the demand curve of a monopoly look like?
- What is another name for economies of scale?
- A monopoly like perfect competition mazimizes profits at a point where MR=MC? T or F
- The short run supply curve of an individual firm in a perfectly competitive mkt. is identical with what?
- At what point on the ATC curve is equilibrium?
- a At the lowest point on the ATC curve.
- b True
- c Downward sloping
- d The portion of the MC curve above the minimum of the AVC curve
- e Economies of Mass production
5 Multiple choice questions
- The price will fall.
- Price is set in elastic region at the price that the industry believes the customer is willing to pay...NOT where MR=MC which is where price is set in perfect competition.
- delivery of first-class mail
- earning profits, generating losses, breaking even.
- behave more like a perfectly competitive firm
5 True/False questions
Is a stock market a perfectly competitive market? → MR=MC Profit is maximized by producing the quantity for which the marginal cost is equal to the marginal revenue
A perfectly competitive INDUSTRY has what kind of demand curve → the firm is earning zero economic profits and is covering explicit and implicit costs
Is selling at higher rates to business travelers price discrimination? → Normal rate of return
How does a monopoly affect income inequality? → Whe it was created by the government
What does price regulation do to a monopoly? → 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