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