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5 Written questions

5 Matching questions

  1. Are monopolys efficient?
  2. A monopoly like perfect competition mazimizes profits at a point where MR=MC? T or F
  3. What is price descrimination?
  4. No resale:
  5. At what point on demand curve is fair market price for a monopoly?
  1. a Selling the same product to different buyers at different prices (ex: discounts for the elderly)
  2. b True
  3. c Original purchaser cannot resale product because their is no market for it:resale is impossible
  4. d NO, because the monopoly will produce less so they can charge a higher price.
  5. e Where P=ATC on Demand curve

5 Multiple choice questions

  1. At any point UP TO where MR=MC...P will always be above MC in a monoply
  2. Straight up from output to Demand curve. Draw a line to price and you have the profit maximizing price.
  3. No
  4. The price will rise.
  5. Company is generating economic profits

5 True/False questions

  1. Assume that a perfectly competive firm that produces widgets is in long-run equilibrium. Then suddenly the market demand for widgets increases. The firm willnot earn an economic profit but be allocatively efficient and productively efficient


  2. Is selling cheaper in bulk a price discrimination?Selling the same product to different buyers at different prices (ex: discounts for the elderly)


  3. A firm that is producing at the lowest possible average cost is always:To reduce costs.


  4. Why does a monopoly continue to make profits in the long run while an industry in perfect competition cannot?Increases income inequality


  5. In a perfectly competitive mkt. if TR=TC what is happening?Zero economic profits (normal rate of return) this is where MR=MC