econ

If the marginal cost curve of a monopolist shifts up which of the following will occur to the monopolist price and output

Price will increase output will decrease

Difference profit maximizing out but in the short run is

Q 1 because MR equals MC

Which of the following combinations of output price an economic profit is consistent for the profit maximizing monopolist depicted in the graph above

Q1, P4, P2P4IM

which of the following will be true if the firm is in a perfectly competitve market and the price is P1

in the long run, existing firms in the industry will produce an output level greater than Q1

if the price of output increases from 8 to 10, the profit maximizing firm will

increase output level to 18 because this is the output at which price equals marginal cost

F&D manufacturing company

increasing returns to scale

which of the following statements best fits the graphs

economic losses are incurred, and exit of firms from the market will cause proces to increase in the long run

the graph above shows a firms long-run average total cost curve. which of the following statements is true as the firm increases its scale of production

for the output levels above Q1, the firm experiences diseconomies of scale

the long run industry supply curve for corn is

horizontal

if there are many firms in an industry and each firm's product is indistinguishable from the products of the other firms, the individual firm's demand curve will be

horizontal and identical for every firm

which of the following are charcteristics of a perfectly competitve industry

new firms can enter easily and there is no product differentiation

A monopolistically competitive profit maximizing firm is currently producing and selling 2000 units of output. At this output level, marginal revenue is nine dollars, average revenue is $10, and the average variable cost is eight dollars. The product price is

$10

reff corp

200,200

Which of the following will cause an unregulated monopolist to produce a more allocatively efficient level of output

A subsidy that increases as output increases

As an unregulated monopolist commerce city cable is earning positive economic profit.

Average total cost

Which of the following statements about cost is always true for both monopolies and perfectly competitive firms

Average total cost equals marginal cost an average total cost is a minimum

The graph above shows a firms cost in revenue curves. This profit maximizing firm will

Charge a higher price than that necessary to maximize revenues

In the long run, and monopolistically competitive firm is allocativly inefficient because the firm will

Charger price greater than the marginal cost

One justification for government regulation of a monopoly is that Unregulated monopoly

Chartres a prize higher than a competitive market price

The Gruffalo the pigs caused in revenue curves for a typical firm in a monopolistically competitive industry. Suppose at the firm is producing zero units of output. To maximize profits it should do which of the following to output and price.

Decrease output. Increased prize

Which of the following is true if a monopolist marginal revenue is negative at the current output

Demand for its product is price inelastic

Price discrimination occurs when

Differences in the products price do not reflect differences in cost of production

If the firm engages in perfect price discrimination, it charges

Each customer the highest price the consumer is willing to pay

A profit Maximizing monopolist selects it's output level in the

Elastic region of its demand curve

If the government regulates a natural monopolist to produce the allocated we efficient level of output, it will require the monopolist to set a prize that is

Equal to the marginal cost and Grant subsidy to cover the loss

Which of the following will most likely lead to zero economic profit

Free entry and exit of firms

A monopoly is different from a perfectly competitive firm in that a monopoly

Has a marginal revenue curve that lies below its demand curve

Which of the following can give a firm market power

Having economies of scale in production over the range of market output

If the monopolist produces the allocative we efficient level of output rather than the profit maximizing level of output consumer surplus will

Increase by the area P5JKP4

At the current production level of good X, price is greater than marginal cost. Which of the following actions would lead to greater efficiency

Increasing the production of good X

When the monopolist produces the socially optimal level of output, it is

Incurring economic losses and it requires a subsidy to continue in business

Which of the following statements about a monopolistically competitive firm in the long run equilibrium is true

It has excess capacity and it's output price exceeded marginal cost even though it's longer on profit is zero

Which of the following statements about a monopolistically competitive firm in the long run equilibrium is true

It has excess capacity and it's output price exceeds its marginal cost even though it's a long run profit is zero

Which of the following is true of a monopolistically competitive firm in the long run equilibrium

It produces were marginal cost equals marginal revenue, and the price is equal to the total average cost

Generally monopolies are considered an efficient because they

Lead to an under allocation of resources in the affected market

A single price monopolist marginal revenue is

Less than its price

The profit maximizing output level produced by an unregulated monopoly is

Less than the socially optimal up level since The prize paid by consumers exceeds the firms marginal cost

Anti-trust laws are designed to maintain a competitive market environment by

Limiting practices that increase of farmers market power

Which of the following is not a characteristic of monopolistically competitive markets

Long run economic profit

In monopolistic competition a goal of advertising is to

Make a firms demand curve less elastic

Assume that a monopolistically competitive firm is currently maximizing profit with an output of 100 units and a price of $50 which of the following is true

Marginal cost is greater than marginal revenue when the firm produces 150 units of output

Assume that a firm is maximizing short run profits and that price is greater than average variable cost which of the following must be true at the firms level of output

Marginal revenue is equal to marginal cost

Which of the following is true of a monopolistically competitive firm in the long run equilibrium

Marginal revenue is equal to marginal cost, and price is equal to average total cost

Which of the following is true in a profit maximizing monopolist produces in the elastic portion of its demand curve

Marginal revenue is positive

Anti-trust policies are put in place to limit which of the following

Monopoly power

If the monopolist chooses to maximize the total revenue rather than the total profit it will choose which combination of price and output

P3, Q3

Policy one: require the monopoly to set quantity and price were demand equals marginal cost

Policy one might require the payment of a subsidy to the firm

Which of the following is true of both monopolistically competitive and perfectly competitive firms in the long run equilibrium

Price equals average total cost

Which of the following is true of a monopolistically competitive firm in the long run equilibrium

Price equals marginal cost in the firm on zero economic profits

A market clearly is not perfectly competitive if which of the following is true and equilibrium

Price exceeds marginal cost

Which of the following is necessarily true of the profit maximizing equilibrium of a monopolist two sets a single price

Price is greater than marginal cost

Firms in monopolistic competition do not attain allocative efficiency because at the long run equilibrium output, which of the following is true

Price is greater than the marginal cost

Compared with firms in a perfectly competitive industry, firms in a monopolistically competitive industry are in efficient because they

Restrictor output level to maximize profits

if the current price of olive oil is 5 per quart and the demand for olive oil increases, then the price of olive oil will change in which of the following ways in the short run and long run

SR be more than 5 LR be equal to 5

Which of the following is true for a monopoly but not for a perfectly competitive firm

The firm face a downward sloping demand curve

Which of the following conditions is necessary for productivity efficiency

The firm is producing a given level of output with a least-cost combination of inputs

In monopolistic competition, an individual firms market power stems from which the following

The production of a differentiated product

Monopolist demand curve is necessarily

The same as the market demand curve

Which of the following is an unnecessary condition for price discrimination

The seller can separate consumers according to their elasticity of demand

Which of the following will the firm do in the long run if market conditions do not change

They will exit the industry

From the point of you of efficiency, a monopolist produces

Too little of a good in charge is too high in price

The price of an airline ticket is typically lower if a traveler buys the tickets several weeks before the flights departure date rather than one day of departure. This pricing strategy is based on the assumption that

Travelers demand for flights becomes less elastic as the departure date approaches

economies of scale can be illustrated by

a decreasing long-run average total cost curve as a firm produces more output

For a perfectly competitive, increasing- cost industry, an increase in the industry's demand will lead to which of the following in the long run

an upward shift in each firm's long run average cost curve

Which of the following is a source of Monopoly power

barriers to entry

if the output of a firm doubles when the firm doubles all of its inputs, then the firm must be experiencing

constant returns to scale

in the short run the firm wil

continue to produce as long as the price is greater than or equal to p2

a perfectly competitive firm is producing 10 units of output and sells the product fro 5 per unit. At this level of output the ATC is 4

decrease output until price is equal to marginal cost

if a perfectly competitive firm is producing where marginal cost is rising and greater than marginal revenue, to maximize profits it should

decrease the level of production

which of the following is a result of increasing returns to scale

downward sloping long-run average total cost curve

which of the following is true for a perfectly competitive firm in long run equilibrium

it is allocativly efficient

if a perfectly ompetitive firm increases its price above the market equilibrium price, which of the following will be true for this firm

it will not sell any outputs

at the current output level, a firm finds that it has the potential to increase its profit by expanding output. which of the following must hold at the current output for this firm

p = mr > mc

the graph above shows the short run cost curves of a firm in a perfectly competitve market. which of the following are true at the firms profit maximizing output level

price exceeds total average cost and new firms are likely to enter the market in the long run

productive effciency occurs when a firm produces output at a level which

price is equal to marginal cost

assume that the market price is P0 and the firm at Q2. to maximize profit, the firm should

produce quantity Q1 where price is equal to marginal cost

one graph

rstv

assume a perfectly competitve firm is curretly producing 100 units of output. Its marginal cost is 6

shut down

assume that a profit maximizing, perfectly competitive firm has economic losses in the short run. if the firm continues to produce and sell its goods, then which of the following must be true

the firm is covering all of its variable costs but not all of its fixed costs of production

the characteristics that causes firms in a perfectly competitive industry to earn zero economic profit in the long run is

there are no barriers to entry and exit