5 Written questions
5 Matching questions
- Is selling at higher rates to business travelers price discrimination?
- At what point of Demand curve does a monopoly operate?
- Are monopolys efficient?
- A monopoly like perfect competition mazimizes profits at a point where MR=MC? T or F
- A perfectly competitive firm should always...
- a Produce the quantity where its marginal cost equals its marginal revenue
- b NO, because the monopoly will produce less so they can charge a higher price.
- c Yes
- d Where P exceeds ATC.
- e True
5 Multiple choice questions
- At the poin where price and quantity meet the Demand curve.
- perfectly elastic demand curve
- ATC x Q
- Monopolys charge a higher price and customers are willing to pay it due to low elasticity of demand.
- NO they do not
5 True/False questions
What laws make monopolys illegal? → No
In a perfectly competitive market where is equilibrium? → Company is generating economic losses
What does price regulation of natural monopolies NOT lead to? → Whne a large firm can produce a product at a lower per unit cost than can a smaller firm.
A perfectly competitive INDUSTRY has what kind of demand curve → Produce the quantity where its marginal cost equals its marginal revenue
What are charcteristics fo 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