When a oligopolist individually chooses its level of production to maximize its profits it charges a price that is ?

Related Mcqs:

1. Suppose an oligopolist individually maximizes its profits. When calculating profits, if the output effect exceeds the price effect on the marginal unit of production, then the oligopolist ?

   A. Should produce more units
   B. has maximized profits.
   C. is in a Nash equilibrium
   D. Should produce fewer units
   E. should exit the industry.

2. When an oligopolist individually chooses its level of production to maximize its profits, it produces an output that is ?

   A. more than the level produced by a monopoly and less than the level produced by a competitive market
   B. less than the level produced by a monopoly and more than the level produced by a competitive market
   C. less than the level produce by either monopoly or a competitive market
   D. more than the level produced by either monopoly or a competitive market

3. Suppose that ABC publishing sells an economics textbook and accompanying study guide. Raheel is willing to pay Rs75 for the text and Rs15 for the study guide. Mariam is willing to spend Rs60 for the text and Rs25 for the study guide. Suppose both the book and study guide have a zero-marginal cost of study production. If ABC publishing charges separate price for both products its best strategy is to charge price that when combined, total ?

   A. Rs 85
   B. Rs 75
   C. Rs 80
   D. Rs 60

4. Sana values a pair of blue jeans at Rs400. If the price is Rs350 Sana buys the jeans and generates consumer surplus of Rs50 Suppose a tax is placed on blue jeans that causes the price of blue jeans to rise to Rs450 Now sana chooses not to buy a pair of?

   A. the deadweight has demonstrated
   B. the ability-to-pay principle
   C. the benefits principle
   D. horizontal equity
   E. The administrative burden of a tax.

5. The ability of the Organization of Petroleum Exporting Countries (OPEC) to maximize profits is hampered by ?

   A. a lack of substitutes for oil
   B. similar cost schedules for member countries
   C. highly inelastic world demand curve for oil
   D. economic recession for oil importing nations

6. In order to maximize profits, a monopoly company will produce that quantity at which the ?

   A. marginal revenue equals average total cost
   B. Price equals marginal revenue
   C. marginal revenue equals marginal cost
   D. total revenue equals total cost

7. Public limited companies may not maximize their profits because ?

   A. they are afraid of encouraging takeovers.
   B. shareholders have little control over managers.
   C. shareholders want higher dividends.
   D. both the first and third option.

8. A firm may be unable to maximize profits because it ?

   A. does not know its MC and MR
   B. has too much information
   C. has too little information
   D. The first and third option

9. Suppose the price level falls but suppliers only notice that the price of their particular product has fallen Thinking there has been a fall in the relative price of their product they cut back on production, This is a demonstration of the ?

   A. misperceptions theory of the short run aggregate supply curve
   B. classical dichotomy theory of the short run aggregate supply curve
   C. sticky price theory of the short run aggregate supply curve
   D. sticky wage theory of the short run aggregate supply curve

10. The firm would maximize profit by selling computers in the United States at a price of __________ and _________ computers in Japan at a price of __________?

    A. 200, $2,000, 100 $1,000
    B. 300, $1,800, 800 $800
    C. 300, $1,800, 400 $800
    D. 500, $1,400, 400 $800