Finale micro

suppose the table below describes the demand for a good produced by monopolist price Quantity 10 1 9 2 8 3 7 4 6 5 5 6 4 7

$24; 6

An imperfectly competitive firm faces a demand curve that is __________, while a perfectly competitive firm faces a demand curve that is _____.

Downward sloping and perfectly elastic.

30 units

Suppose a monopolist faces the demand curve shown below. If the monopolist cost is constant and equal to $10, is profit- maximizing level of output is

$0

Suppose a monopolist faces the demand curve shown below. the marginal revenue of the 35th unit of output

A pure monopoly exists when:

a single firm produces a good with no close substitutes

if a firms production process exhibits increasing returns to scale, then cutting in half all the firms inputs will lead output to ________.

fall by more than haft.

If a natural monopoly increases the quantity of output it produces, then:

its average cost will increase

for all firms, the additional revenue collected from the sale of one additional unit out is termed:

marginal revenue

if the demand curve facing a monopolist shifts, then the monopolist's:

marginal revenue curve and profit- maximizing level of output will change.

The monopolist will maximize profits at the output level for which:

marginal revenue equals marginal cost

if a firm collects $90 in revenue when it sells 4 units, $100 in revenue when it sells 5 units, and $105 in revenue when it sells 6 unites then one can infer the firm is aL

monopolist

A monopolistically competitive firm is one

of many firms that sell products that are close but not perfect substitutes

if the firms marginal cost of production is constant at $3, the firm should :price Quantity 10 1 9 2 8 3 7 4 6 5 5 6 4 7

produce 4 units

Economies of scale exist when:

the average cost of production falls as output rises