Learn more about our help with Assignments: Economics
Search & Filtering
mutiple choice
1. Which of the following best explains an economic criticism of unregulated monopolists?
a. Monopolists do not try to minimize their costs of production.
b. Monopolists produce where marginal revenue is greater than marginal costs.
c. Monopolists attempt to produce too many products, and as a result, their prices are high,
and consumer's waste time trying to choose between too many options.
d. Monopolists restrict output, and as a result, they fail to produce units that are valued more
than the marginal cost of producing them.
1. Which of the following best explains an economic criticism of unregulated monopolists?
a. Monopolists do not try to minimize their costs of production.
b. Monopolists produce where marginal revenue is greater than marginal costs.
c. Monopolists attempt to produce too many products, and as a result, their prices are high,
and consumer's waste time trying to choose between too many options.
d. Monopolists restrict output, and as a result, they fail to produce units that are valued more
than the marginal cost of producing them.
multiple choice
1. The strategy underlying price discrimination is to:
a. charge higher prices to customers who have better access to substitutes.
b. charge everyone the same price but limit the quantity they are allowed to buy.
c. increase total revenue by charging higher prices to those with the most inelastic demand
for the product and lower prices to those with the most elastic demand.
d. reduce per-unit costs by charging higher prices to those with the most elastic demand and
lower prices to those with the most inelastic demand.
2. For a monopolist to practice price discrimination, one necessary condition is that the product offered for sale must be:
a. high quality.
b. expensive.
c. cheap.
d. impossible or difficult to resell.
1. The strategy underlying price discrimination is to:
a. charge higher prices to customers who have better access to substitutes.
b. charge everyone the same price but limit the quantity they are allowed to buy.
c. increase total revenue by charging higher prices to those with the most inelastic demand
for the product and lower prices to those with the most elastic demand.
d. reduce per-unit costs by charging higher prices to those with the most elastic demand and
lower prices to those with the most inelastic demand.
2. For a monopolist to practice price discrimination, one necessary condition is that the product offered for sale must be:
a. high quality.
b. expensive.
c. cheap.
d. impossible or difficult to resell.
multiple choice
1. A monopolist earning economic profit in the short run determines that at its present level of output, marginal revenue is $23 and marginal cost is $30. Which of the following should the firm do to increase profit?
a. Raise price and lower output.
b. Lower price and lower output.
c. Raise price and raise output.
d. Lower price and raise output.
e. Lower output, but leave price unchanged.
2. If marginal costs increase, a monopolist will:
a. decrease price and increase output.
b. decrease both price and output.
c. increase price and decrease output.
d. increase both price and output.
e. keep both price and output at the same level.
1. A monopolist earning economic profit in the short run determines that at its present level of output, marginal revenue is $23 and marginal cost is $30. Which of the following should the firm do to increase profit?
a. Raise price and lower output.
b. Lower price and lower output.
c. Raise price and raise output.
d. Lower price and raise output.
e. Lower output, but leave price unchanged.
2. If marginal costs increase, a monopolist will:
a. decrease price and increase output.
b. decrease both price and output.
c. increase price and decrease output.
d. increase both price and output.
e. keep both price and output at the same level.
multiple choice
1. A monopoly will price its product:
a. where total revenue is maximized.
b. where total costs are minimized.
c. at that point on the market demand curve corresponding to an output level in which marginal revenue equals marginal cost.
d. at that point on the market demand curve which intersects the marginal cost curve.
2. What should a profit maximizing monopolist do if she is currently producing where MC < MR?
a. Increase output until MC = MR.
b. Decrease output until MC = MR.
c. Shut down in the long run.
d. Keep producing at this level.
e. Operate only in the short run.
1. A monopoly will price its product:
a. where total revenue is maximized.
b. where total costs are minimized.
c. at that point on the market demand curve corresponding to an output level in which marginal revenue equals marginal cost.
d. at that point on the market demand curve which intersects the marginal cost curve.
2. What should a profit maximizing monopolist do if she is currently producing where MC < MR?
a. Increase output until MC = MR.
b. Decrease output until MC = MR.
c. Shut down in the long run.
d. Keep producing at this level.
e. Operate only in the short run.
1. A monopolist always faces a demand curve that is:
a. perfectly inelastic.
b. perfectly elastic.
c. unit elastic.
d. the same as the entire market demand curve.
2. There is only one gas station within hundreds of miles. The owner finds that when she charges $3 a gallon, she sells 199 gallons a day, and when she charges $2.99 a gallon, she sells 200 gallons a day. The marginal revenue of the 200th gallon of gas is:
a. $.01.
b. $1.
c. $2.99.
d. $3.
e. $600.
3. A monopolist earns an economic profit only when:
a. average total cost equals than price.
b. marginal cost equals price.
c. marginal revenue equals price.
d. average total cost is less than price.
a. perfectly inelastic.
b. perfectly elastic.
c. unit elastic.
d. the same as the entire market demand curve.
2. There is only one gas station within hundreds of miles. The owner finds that when she charges $3 a gallon, she sells 199 gallons a day, and when she charges $2.99 a gallon, she sells 200 gallons a day. The marginal revenue of the 200th gallon of gas is:
a. $.01.
b. $1.
c. $2.99.
d. $3.
e. $600.
3. A monopolist earns an economic profit only when:
a. average total cost equals than price.
b. marginal cost equals price.
c. marginal revenue equals price.
d. average total cost is less than price.
1. Which of the following is true for a pure monopolist?
a. The firm has a perfectly elastic demand curve.
b. The firm will always earn an economic profit.
c. The demand curve is above the marginal revenue curve.
d. None of these is true.
2. Which of the following best explains why the monopolist's marginal revenue is less than the selling price?
a. To sell more units, the monopolist must reduce price on all units sold.
b. As the monopolist expands output, the average total cost will decline.
c. The monopolist charges each consumer the highest possible price.
d. When a firm has a monopoly, consumers have no choice other than to pay the price set by
the monopolist.
3. Graphically, the marginal revenue curve of a monopolist:
a. will sometimes lie below the demand curve of the monopolist.
b. will always lie below the demand curve of the monopolist.
c. is the same as the demand curve of the monopolist.
d. will equal -1 when the elasticity of demand is unitary.
a. The firm has a perfectly elastic demand curve.
b. The firm will always earn an economic profit.
c. The demand curve is above the marginal revenue curve.
d. None of these is true.
2. Which of the following best explains why the monopolist's marginal revenue is less than the selling price?
a. To sell more units, the monopolist must reduce price on all units sold.
b. As the monopolist expands output, the average total cost will decline.
c. The monopolist charges each consumer the highest possible price.
d. When a firm has a monopoly, consumers have no choice other than to pay the price set by
the monopolist.
3. Graphically, the marginal revenue curve of a monopolist:
a. will sometimes lie below the demand curve of the monopolist.
b. will always lie below the demand curve of the monopolist.
c. is the same as the demand curve of the monopolist.
d. will equal -1 when the elasticity of demand is unitary.
multiple choice
1. Which of the following is true under natural monopoly?
a. The marginal cost curve will be above the average cost curve.
b. The monopolist will set price equal to marginal cost and will earn economic profits.
c. Economies of scale exist.
d. Output is produced under conditions of constant cost.
2. The demand curve any monopolist uses in making output decisions is:
a. the same as the demand curve facing a perfectly competitive firm.
b. vertical, because there are no close substitutes for its product.
c. horizontal, because there are no close substitutes for its product.
d. the same as the market demand curve.
e. perfectly inelastic.
1. Which of the following is true under natural monopoly?
a. The marginal cost curve will be above the average cost curve.
b. The monopolist will set price equal to marginal cost and will earn economic profits.
c. Economies of scale exist.
d. Output is produced under conditions of constant cost.
2. The demand curve any monopolist uses in making output decisions is:
a. the same as the demand curve facing a perfectly competitive firm.
b. vertical, because there are no close substitutes for its product.
c. horizontal, because there are no close substitutes for its product.
d. the same as the market demand curve.
e. perfectly inelastic.
MULTIPLE CHOICE
1. The monopolist's demand curve is:
a. identical to the market demand curve.
b. identical to the marginal revenue curve.
c. below the marginal revenue curve.
d. a horizontal line at the market price.
e. a U - shaped curve.
2. A natural monopoly is a market where:
a. a single firm has control over a vital natural resource.
b. many smaller firms can produce the entire market output at the same per - unit cost as could
one large firm.
c. a single large firm can produce the entire market output at a lower per - unit cost than a
group of smaller firms.
d. many smaller firms can produce the entire market output at a lower per - unit cost than
could one large firm.
1. The monopolist's demand curve is:
a. identical to the market demand curve.
b. identical to the marginal revenue curve.
c. below the marginal revenue curve.
d. a horizontal line at the market price.
e. a U - shaped curve.
2. A natural monopoly is a market where:
a. a single firm has control over a vital natural resource.
b. many smaller firms can produce the entire market output at the same per - unit cost as could
one large firm.
c. a single large firm can produce the entire market output at a lower per - unit cost than a
group of smaller firms.
d. many smaller firms can produce the entire market output at a lower per - unit cost than
could one large firm.
TRUE/FALSE
1. A perfectly competitive market is characterized by highly advertised goods.
2. If a firm is producing an output level at which marginal revenue exceeds marginal cost, the firm will increase profits by reducing its output level.
3. When faced with an economic loss, a competitive firm will shut down its operations in the short run.
4. In the short run, the supply curve for a perfectly competitive firm is its marginal cost curve for all levels of output.
5. In long - run equilibrium, a perfectly competitive firm will produce an output level at which its long - run average cost curve is upward sloping.
1. A perfectly competitive market is characterized by highly advertised goods.
2. If a firm is producing an output level at which marginal revenue exceeds marginal cost, the firm will increase profits by reducing its output level.
3. When faced with an economic loss, a competitive firm will shut down its operations in the short run.
4. In the short run, the supply curve for a perfectly competitive firm is its marginal cost curve for all levels of output.
5. In long - run equilibrium, a perfectly competitive firm will produce an output level at which its long - run average cost curve is upward sloping.
multiple choice
1. Which of the following is true of a perfectly competitive market?
a. If economic profits are earned then the price will fall over time.
b. In long-run equilibrium P = MR = SRMC = SRATC = LRAC.
c. A constant-cost industry exists when the entry of new firms has no effect on their cost
curves.
d All of these.
e None of the above.
2. When an industry is described as a decreasing-cost, increasing-cost, or constant-cost industry, the "cost" that is being referred to is
a. marginal cost.
b. average total cost.
c. average variable cost.
d. sunk cost.
e. fixed cost.
1. Which of the following is true of a perfectly competitive market?
a. If economic profits are earned then the price will fall over time.
b. In long-run equilibrium P = MR = SRMC = SRATC = LRAC.
c. A constant-cost industry exists when the entry of new firms has no effect on their cost
curves.
d All of these.
e None of the above.
2. When an industry is described as a decreasing-cost, increasing-cost, or constant-cost industry, the "cost" that is being referred to is
a. marginal cost.
b. average total cost.
c. average variable cost.
d. sunk cost.
e. fixed cost.
Finding a professional expert in "partial differential equations" in the advanced level is difficult.
You can find this expert in "Assignmentexpert.com" with confidence.
Exceptional experts! I appreciate your help. God bless you!
#340153 on Dec 2023
#340153 on Dec 2023