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Question;56. A monopolist's average revenue is always;a. equal to marginal revenue.;b. greater than the price of its product.;c. equal to the price of its product.;d. less than the price of its product.;57. If a profit-maximizing monopolist faces a;downward-sloping market demand curve, its;a. average revenue is less than the price of the product.;b. average revenue is less than marginal revenue.;c. marginal revenue is less than the price of the product.;d. marginal revenue is greater than the price of the;product.;58. When a monopolist increases the number of units it;sells, there are two effects on revenue. They are the;a. demand effect and the supply effect.;b. competition effect and the cost effect.;c. competitive effect and the monopoly effect.;d. output effect and the price effect.;59. Which of the following statements is (are) true of;monopolies?;a. Monopolies are constrained by market demand.;b. Monopolies benefit from barriers to entry.;c. Monopolies have the ability to set the prices of their;products.;d. All of the above are correct.;60. For a monopolist, marginal revenue is;a. positive when the demand effect is greater than the;supply effect.;b. positive when the monopoly effect is greater than the;competitive effect.;c. negative when the price effect is greater than the output;effect.;d. negative when the output effect is greater than the price;effect.;61. A profit-maximizing monopolist will produce the level of;output at which;a. average revenue is equal to average total cost.;b. average revenue is equal to marginal cost.;c. marginal revenue is equal to marginal cost.;d. total revenue is equal to opportunity cost.;62. For a profit-maximizing monopolist;a. P > MR = MC.;b. P = MR = MC.;c. P > MR > MC.;d. MR < MC < P.;63. Because a monopolist is the sole producer in its market;it can necessarily alter the price of its good;(i) without affecting the quantity sold.;(ii) without affecting its average total cost.;(iii) by adjusting the quantity it supplies to the market.;a. (ii) only;b. (iii) only;c. (i) and (ii);d. (i) and (iii);64. Competitive firms have;a. downward-sloping demand curves and they can sell as much;output as they desire at the market price.;b. downward-sloping demand curves and they can sell only a;limited quantity of output at each price.;c. horizontal demand curves and they can sell as much output;as they desire at the market price.;d. horizontal demand curves and they can sell only a limited;quantity of output at each price.;65. Monopoly firms have;a. downward-sloping demand curves and they can sell as much;output as they desire at the market price.;b. downward-sloping demand curves and they can sell only a;limited quantity of output at each price.;c. horizontal demand curves and they can sell as much output;as they desire at the market price.;d. horizontal demand curves and they can sell only a limited;quantity of output at each price.;66. Because many good substitutes exist for a competitive;firm?s product, the demand curve that it faces is;a. unit-elastic.;b. perfectly inelastic.;c. perfectly elastic.;d. inelastic only over a certain region.;67. When a monopolist decreases the price of its good;consumers;a. continue to buy the same amount.;b. buy more.;c. buy less.;d. may buy more or less, depending on the price elasticity;of demand.;68. When a monopolist increases the amount of output that it;produces and sells, the price of its output;a. stays the same.;b. increases.;c. decreases.;d. may increase or decrease depending on the price;elasticity of demand.;69. When a monopolist increases the amount of output that it;produces and sells, its average revenue;a. increases and its marginal revenue increases.;b. increases and its marginal revenue decreases.;c. decreases and its marginal revenue increases.;d. decreases and its marginal revenue decreases.;70. Which of the following is an impossible feat for a;monopolist to accomplish?;a. control the price of its good;b. charge a higher price and continue to sell the same;quantity;c. operate at a point on the upper half of the demand curve;d. All of the above are correct.

 

Paper#57937 | Written in 18-Jul-2015

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