Exam 3
which of the following statements is NOT a reason why a monopolist does not have a supply curve
a monopoly firm is a "price-taker", not a "price-maker"
a firm that exits its market has to pay
neither its variable costs nor its fixed costs
a firm cannot price discriminate if it
operates in a competitive market
the marginal revenue curve for a monopoly firm starts at the same point on the vertical axis as the
(i and iii) average revenue curve and demand curve
which of the following statements is correct
assuming that implicit costs are positive, accounting profit is greater than economic profit
a monopolist maximized profits by
both a and b (producing an output level where marginal revenue equals marginal costs, and charging a price that is greater than marginal revenue)
becca's butter company sells butter to a broker in Oklahoma City. Because the market for butter is generally considered to be competitive, Becca's butter company
can choose quantity of butter that it produces but not the price at which it sells its butter
a monopolist is able to perfectly price discriminate
consumer surplus and deadweight losses are transformed into monopoly profits
if a monopolist is able to perfectly price descriminate
consumer surplus and deadweight losses are transformed into monopoly profits
which of the following expressions is correct
economic profit = accounting profit - implicit costs
which of the following statements is NOT correct
economies of scale occur when a firm's long-run average total costs are increasing as output increases
which of the following statements is NOT correct (ATC)
for a U-shaped average total cost (ATC) curve, when the marginal cost curve is below the average total cost curve, the average total cost must be rising
which of the following statements is NOT correct
for a firm in a perfectly competitive market, P = AR > MR = MC
for a perfectly competitive market
if existing firms earn positive economic profits, new firms enter, short run market supply shifts right, price falls reducing profits and slowing entry
the competitive firm's short-run supply curve is its
mar marginal cost curve, but only the portion above the minimum of average variable costs
price discrimination requires the firm to
separate customers according to their willingness to pay
if a firm increases its level of production and lower its average total costs of production at the same time then
the firm has a excess capacity
suppose that a competitive market is initially in equilibrium. Then demand increases. If entering firms face the same costs as existing firms and sufficient resources are available for entering firms
the long-run market supply curve will be perfectly elastic
all of the follow statements are correct except
when the marginal product for an input declines as the quantity of that input increases, the production function exhibits diminishing marginal products
