A. charge a higher price
B. produce a lower quantity of the product
C. make a greater amount of economic profit
D. all of the above
Related Mcqs:
- Suppose we know that a monopolist is maximizing its profits. Which of the following is a correct inference? the monopolist has?
A. maximized its total revenue
B. set price equal to its average cost
C. equated marginal revenue and marginal cost
D. maximized the difference between marginal revenue and marginal cost. - Monopolistic competition differs from perfect competition primarily because ?
A. in monopolistic competition entry into the industry is blocked
B. in monopolistic competition there are relatively few barriers to entry.
C. in monopolistic competition, firms can differentiate their products
D. in perfect competition firms can differentiate their products - The long-run equilibrium outcomes in monopolistic competition and perfect competition are similar because in both market structures ?
A. the efficient output level will be produced in the long run
B. firms will only earn a normal profit
C. firms realize all economies of scale
D. firms will be producing at minimum average cost - Firms in perfect competition face a?
A. perfectly elastic demand curve
B. perfectly inelastic demand curve
C. perfectly elastic supply curve
D. perfectly inelastic supply curve - A profit maximizing firm is perfect competition produces where ?
A. Total revenue is maximized
B. Marginal revenue equals zero
C. Marginal revenue equals marginal cost
D. Marginal revenue equals average cost - In the long run in perfect competition ?
A. The price equals the total revenue
B. Firms are allocatively inefficient
C. Firms are productively efficient
D. The price equals total cost - For perfect competition to work there must be ?
A. many buyers and sellers
B. a standard product
C. free entry and exit
D. perfect information
E. all of the above - In perfect competition ?
A. The price equals the marginal revenue
B. the price equals the average variable cost
C. the fixed cost equals the variable costs
D. the price equals the total cost - In the long run in perfect competition ?
A. price = average cost = marginal cost
B. price = average cost = total cost
C. price = marginal cost = total cost
D. Total revenue = Total variable cost - The theory of the second best suggests that in the absence of perfect competition a privatized industry should charge a price of ?
A. p = Z
B. P = MC + Z
C. p = MC
D. P = MC – Z
