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Ap gov unit 2
Terms in this set (14)
Gilligan runs the only dry-cleaning business on a desert isle. If the cost of cleaning fluid falls, he can increase profit by:
which of the following is true of oligopolies
Oligopolists earn comparatively higher profits than perfectly competitive firms because of economies of scale.
For a monopolist that does not price discriminate, economic profit is maximized in the short run at a price of $140. Marginal revenue at that output level is:
less than $140.
The following table shows the output supplied by a firm and its total cost of production. It represents a firm in the _____.
short run because a firm incurs fixed cost
Which of the following is true of the total revenue curve of a perfectly competitive firm?
The slope of the curve remains constant slope as output increases.
The price that represents the shutdown point for a perfectly competitive firm corresponds to the_____.
lowest point on the average variable cost curve
Which of the following is not necessarily a characteristic of a perfectly competitive market structure?
which of the following equations describes the relationship between market price p, average revenue, and marginal revenue for a non discriminating monopolist
p = ar > mr
The automobile industry is an example of what kind of market structure
Monopolistically competitive industries consist of:
many firms, each selling a slightly different product.
Oligopolies compete with existing rivals and try to block new entry by:
offering a variety of products.
In Table 9.1, the marginal revenue from the sixth unit of output is:
A profit-maximizing monopolist supplies the quantity at which:
total revenue exceeds total cost by the greatest amount.
If the government breaks up a monopoly that does not practice discrimination and faces a horizontal marginal cost curve into a perfectly competitive market, _____.
output will increase and price will decrease
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