Microeconomics Test 3

अब Quizwiz के साथ अपने होमवर्क और परीक्षाओं को एस करें!

Total profit is equal to

(Price - ATC) x (Q)

profit maximization

A method of setting prices that occurs when marginal revenue equals marginal cost.

Which of the following is a common barrier to entry in a monopoly market?

A patent on a new product.

Monopolists set prices

At the output where marginal revenue equals marginal cost.

If a perfectly competitive firm is producing a rate of output at which MC exceeds price, then the firm

Can increase its profit by decreasing output.

The demand curve confronting a competitive firm

Equals the marginal revenue curve.

Both a competitive industry and a monopoly

Face downward-sloping market demand curves.

True or False: A monopolist's ability to act as a price setter guarantees economic profits in the short run.

False

The demand curve for each perfectly competitive firm is

Horizontal

A perfectly competitive firm will maximize profits by choosing an output level where

Price equals marginal cost.

A catfish farmer will shut down production when

Price falls below AVC.

For a monopolist, marginal revenue equals

The change in total revenue divided by the change in quantity.

Which of the following is true about the output level where marginal revenue equals marginal cost?

The firm is maximizing profit.

A firm maximizes profit when

Total revenue exceeds total cost by the greatest amount


संबंधित स्टडी सेट्स

Physics Unit E (only the ones i struggle with)

View Set

Chapter 11- Discrimination- Sociology

View Set

Chapter 1: An Introduction to Geology

View Set