A. 1
B. 2
C. 3
D. 4
E. 5
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. - When a monopolist produces an additional unit, the marginal revenue generated by that unit must be ?
A. below the price because the price effect outweighs the output effect
B. above the price because the output effect outweighs the price effect
C. above the price because the price effect outweighs the output effect
D. below the price because the output effect outweighs the price effect - Thomas is a monopolist in the production of your textbook because ?
A. Thomson has a legally protected exclusive right to produce this textbook
B. Thomson owns a key resource in the production of textbooks.
C. Thomson is a natural monopoly,
D. Thomson is a very large company - The monopolist’s supply curve ?
A. does not exist
B. is the marginal cost curve above average variable cost?
C. is the marginal cost curve above average total cost
D. is the upward-sloping portion of the average total cost curve
E. The upward-sloping portion of the average variable cost - A monopolist maximizes profit by producing the quantity at which ?
A. marginal revenue equals marginal cost
B. marginal revenue equals price
C. marginal cost equals price
D. marginal cost equals demand
E. none of these answers - Compared to the case of perfect competition, a monopolist is more likely to ?
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 - When ________ substitutes exist, a monopolist has ________ power to raise price?
A. more; more
B. fewer; less
C. more; less
D. no; infinite - Form society’s point of view, society would be better off if a monopolist ?
A. produced less and charged a higher price
B. produced more and charged a higher price
C. produced more and charged a lower price
D. produced less and charged a lower price. - Comparing a monopoly and competitive firm, the monopolist will ?
A. produce less at a lower price
B. produce more at a lower price
C. produce less at a higher price
D. produce less at a lower price - The Setrite Corporation produce chairs. An economist working for the firm predicts that if people’s incomes rise next year, then the demand for our chairs will for our chairs will increase ceteris paribus The accuracy of the economist’s prediction depends on whether the chairs Setrite Produce ?
A. have few substitutes.
B. are normal goods
C. have few complementary goods.
D. have many complementary goods.
