One feature of pure monopoly is that the monopolist is:
price maker
One major barrier to entry under pure monopoly arises from:
Ownership of essential resources
Under pure monopoly, a profit-maximizing firm will produce:
in the elastic range of its demand curve
A pure monopoly firm will never charge a price in the inelastic range of its demand curve because lowering price to get into this region will:
Decrease total revenue, increase total cost, and decrease profit
(5)Refer to the above graph showing the revenue curves for a monopolist. What price should be charged in order to maximize total revenue?
P3
(6)Refer to the above graph. When the total revenue curve reaches a maximum, marginal revenue is:
zero
(7) Refer to the above table for Nina. What is the change in total revenue if she lowers the price from $20 to 18$?
30
A monopolist can sell 20 toys per day for $8.00 each. To sell 21 toys per day, the price must be cut to 7.00. The marginal revenue of the 21st toy is:
-13$
At the profit maximizing level of output, a monopolist will always operate where:
Price is greater than marginal cost
Many people believe that monopolies charge any price they want to without affecting sales. Instead the output level for a profit-maximizing monopoly is determined by:
Marginal cost=Marginal Revenue
A pure monopolist will shut down in the short run if:
P<AVC
The supply curve for a monopoly is:
Not clearly defined.
When compared with the purely competitive industry with identical costs of production, a monopolist will produce:
Less output and charge a higher price
Which of the following is a characteristic of monopolistic competition?
Relatively easy entry
Monopolistic competition is characterized by firms:
producing differentiated products
The goal of product differentiation and advertising in monopolistic competition is to make:
Price less of a factor and product differences more of a factor in consumer purchases.
A monopolistically competitive firm is producing at an output level in the short run where average total cost is 4.50, price is 4.00, marginal revenue is 2.50 and marginal cost is 2.50. The firm is operating:
with a loss in the short run
In monopolistic competition, a firm has a limited degree of "price-makeing" ability. This means that the firm will:
set price above marginal cost
Assume that in a moralistically competitive industry, firms are earning economic profit. This situation will:
Attract other firms to enter the industry,causing the firms profits to shrink
In the short run, the monopolistically competitive firm will experience:
Economic profits or losses, but in the long run only a normal profit.
Monoplistic competitive firms are productively inefficient because production occurs where:
Average total cost is greater than the minimum average total cost
Compared to a purely competitive firm in long-run equilibrium, the monopolistic competitor has a:
Higher price and lower output
In a oligopolistic market there are:
Few sellers
The characteristic most closely associated with oligopoly is:
a few large producers
Which is an example of a differentiated oligopoly?
the beer industry