Question 1

A monopolist's marginal revenue is below market price.

Accepted Answer

A) True 
 B)False  True

Question 2

A perfectly competitive firm is selling 300 units of output per week at a price of $1,050. Average total cost is $1,010, average variable cost is $990, and marginal cost is $1,100. From this information, it is clear that the firm

Accepted Answer

A)  can increase its profit by producing more output per week. 
B)  can increase its profit by producing less output per week. 
C)  can increase its profit by charging a price below $100. 
D)  None of the above is correct. 
A)  can increase its profit by producing more output per week. 
B)  can increase its profit by producing less output per week. 
C)  can increase its profit by charging a price below $100. 
D)  None of the above is correct. B

Question 3

-Refer to the monopoly market graph. If the monopolist is maximizing profit, then profit is approximately equal to

Accepted Answer

A)  $0. 
B)  $10. 
C)  $20. 
D)  $30. 
A)  $0. 
B)  $10. 
C)  $20. 
D)  $30. B

Question 4

Use the following to answer questions below:
  
-Which of the following is a characteristic of both monopolistic competition and monopoly?

Accepted Answer

A)  Firms face significant barriers to entry. 
B)  A firm's marginal revenue curve is below its demand curve. 
C)  In the long run, a firm will earn zero economic profit. 
D)  In the long run, a firm will produce a level of output that corresponds to the minimum point of its average total cost curve. 
A)  Firms face significant barriers to entry. 
B)  A firm's marginal revenue curve is below its demand curve. 
C)  In the long run, a firm will earn zero economic profit. 
D)  In the long run, a firm will produce a level of output that corresponds to the minimum point of its average total cost curve.

Question 5

Figure 2
  
-Refer to the Figure 2 which represents the market demand for a monopolist. The monopolist can maximize profit by charging approximately

Accepted Answer

A)  $1.50 per unit. 
B)  $2.90 per unit. 
C)  $3.80 per unit. 
D)  $5.90 per unit. 
A)  $1.50 per unit. 
B)  $2.90 per unit. 
C)  $3.80 per unit. 
D)  $5.90 per unit.

Question 6

Use the following to answer questions below: 
  
-Refer to the competitive market graph. If market price is equal to $60,

Accepted Answer

A)  the market will be in equilibrium. 
B)  there will be a shortage of 6 units. 
C)  there will be a surplus of 6 units. 
D)  None of the above is correct. 
A)  the market will be in equilibrium. 
B)  there will be a shortage of 6 units. 
C)  there will be a surplus of 6 units. 
D)  None of the above is correct.

Question 7

The market demand function for a product sold by a monopolist is given below:
 $$Q D = 20 - P$$ The monopolist's marginal cost function is given below:
 $$M C = - 10 + 3 Q$$ Calculate the equilibrium price and quantity.

Accepted Answer

The answer of The market demand function for a product...

Question 8

The market demand function for a product sold by a monopolist is given below:
 $$Q D = 2500 - 10 P$$ The monopolist's marginal cost function is given below:
 $$M C = 10 + Q$$ Calculate the equilibrium price and quantity.

Accepted Answer

The answer of The market demand function for a product...

Question 9

In the short run, a monopolist will shut down if it is producing a level of output where marginal revenue is equal to short-run marginal cost and price is

Accepted Answer

A)  greater than average total cost. 
B)  less than average total cost. 
C)  greater than average variable cost. 
D)  less than average variable cost. 
A)  greater than average total cost. 
B)  less than average total cost. 
C)  greater than average variable cost. 
D)  less than average variable cost.

Question 10

The market demand function for a product sold by a monopolist is given below:
 $$Q D = 120 - 4 P$$ The monopolist's marginal cost function is given below:
 $$M C = 1.5 Q$$ Calculate the equilibrium price and quantity.

Accepted Answer

The answer of The market demand function for a product...

Question 11

A firm has the following total revenue and total costs functions.
TR=9Q-Q², TC=Q²-Q
Compute the optimal quantity the firm should produce and sell.

Accepted Answer

The answer of A firm has the following total revenue...

Question 12

The demand function for a product sold by a monopolistically competitive firm is given below:
 $$Q D = 250 - P$$
The firm's marginal cost function is given below:
$$M C = 10 + 2 Q$$
Calculate the equilibrium price and quantity.

Accepted Answer

The answer of The demand function for a product sold...

Question 13

Use the following to answer questions below
  
-Refer to the graph of demand and marginal revenue. If a profit-maximizing monopolist with a constant unit cost equal to $40 faces the demand curve plotted in the graph, then the monopolist's total profit

Accepted Answer

A)  will be equal to $90. 
B)  will be equal to $70. 
C)  will be equal to $30. 
D)  None of the above is correct. 
A)  will be equal to $90. 
B)  will be equal to $70. 
C)  will be equal to $30. 
D)  None of the above is correct.

Question 14

Monopolists always make economic profits.

Accepted Answer

A) True 
 B)False

Question 15

Most markets are either perfectly competitive or monopolized.

Accepted Answer

A) True 
 B)False

Question 16

A monopolized market is in long-run equilibrium when

Accepted Answer

A)  zero economic profit is earned by the monopolist. 
B)  production takes place where price is equal to long-run marginal cost and long-run average cost. 
C)  production takes place where long-run marginal cost is equal to marginal revenue and price is not below long-run average cost. 
D)  All of the above are correct. 
A)  zero economic profit is earned by the monopolist. 
B)  production takes place where price is equal to long-run marginal cost and long-run average cost. 
C)  production takes place where long-run marginal cost is equal to marginal revenue and price is not below long-run average cost. 
D)  All of the above are correct.

Question 17

Use the following to answer questions below:
  
-A perfectly competitive firm is selling 300 units of output per week at a price of $100. Average total cost is $94, average variable cost is $89, and marginal cost is $97. From this information, it is clear that the firm

Accepted Answer

A)  can increase its profit by producing more output per week. 
B)  can increase its profit by producing less output per week. 
C)  can increase its profit by charging a price below $100. 
D)  None of the above is correct. 
A)  can increase its profit by producing more output per week. 
B)  can increase its profit by producing less output per week. 
C)  can increase its profit by charging a price below $100. 
D)  None of the above is correct.

Question 18

Commodities that sell for the same price are referred to as heterogeneous.

Accepted Answer

A) True 
 B)False

Question 19

Use the following to answer questions below
  
-Refer to the graph of unit cost curves 1. If the market price is 45, then a profit-maximizing competitive firm with these short-run unit cost curves

Accepted Answer

A)  will not produce any output. 
B)  will produce output and will make economic losses. 
C)  will produce output and will make an economic profit of zero. 
D)  will produce output and will make economic profits. 
A)  will not produce any output. 
B)  will produce output and will make economic losses. 
C)  will produce output and will make an economic profit of zero. 
D)  will produce output and will make economic profits.

Question 20

The shut-down point of a perfectly competitive firm is at the minimum point on its short-run average variable cost curve.

Accepted Answer

A) True 
 B)False

A monopolist's marginal revenue is below market price.

A perfectly competitive firm is selling 300 units of output per week at a price of $1,050. Average total cost is $1,010, average variable cost is $990, and marginal cost is $1,100. From this information, it is clear that the firm

-Refer to the monopoly market graph. If the monopolist is maximizing profit, then profit is approximately equal to

Use the following to answer questions below: -Which of the following is a characteristic of both monopolistic competition and monopoly?

Figure 2 -Refer to the Figure 2 which represents the market demand for a monopolist. The monopolist can maximize profit by charging approximately

Use the following to answer questions below: -Refer to the competitive market graph. If market price is equal to $60,

The market demand function for a product sold by a monopolist is given below: $Q D = 20 - P$ The monopolist's marginal cost function is given below: $M C = - 10 + 3 Q$ Calculate the equilibrium price and quantity.

The market demand function for a product sold by a monopolist is given below: $Q D = 2500 - 10 P$ The monopolist's marginal cost function is given below: $M C = 10 + Q$ Calculate the equilibrium price and quantity.

In the short run, a monopolist will shut down if it is producing a level of output where marginal revenue is equal to short-run marginal cost and price is

The market demand function for a product sold by a monopolist is given below: $Q D = 120 - 4 P$ The monopolist's marginal cost function is given below: $M C = 1.5 Q$ Calculate the equilibrium price and quantity.

A firm has the following total revenue and total costs functions. TR=9Q-Q², TC=Q²-Q Compute the optimal quantity the firm should produce and sell.

The demand function for a product sold by a monopolistically competitive firm is given below: $Q D = 250 - P$ The firm's marginal cost function is given below: $M C = 10 + 2 Q$ Calculate the equilibrium price and quantity.

Use the following to answer questions below -Refer to the graph of demand and marginal revenue. If a profit-maximizing monopolist with a constant unit cost equal to $40 faces the demand curve plotted in the graph, then the monopolist's total profit

Monopolists always make economic profits.

Most markets are either perfectly competitive or monopolized.

A monopolized market is in long-run equilibrium when

Use the following to answer questions below: -A perfectly competitive firm is selling 300 units of output per week at a price of $100. Average total cost is $94, average variable cost is $89, and marginal cost is $97. From this information, it is clear that the firm

Commodities that sell for the same price are referred to as heterogeneous.

Use the following to answer questions below -Refer to the graph of unit cost curves 1. If the market price is 45, then a profit-maximizing competitive firm with these short-run unit cost curves

The shut-down point of a perfectly competitive firm is at the minimum point on its short-run average variable cost curve.

The Nature and Scope of Managerial Economics

Demand, Supply, and Equilibrium Analysis

Optimization Techniques and New Management Tools

Demand Theory

Demand Estimation

Demand Forecasting

Production Theory and Estimation

Cost Theory and Estimation

Oligopoly and Firm Architecture

Game Theory and Strategic Behavior

Pricing Practices

Regulation and Antitrust: The Role of Government in the Economy

Risk Analysis

Long-Run Investment Decisions: Capital Budgeting

Filters

Exam 9: Market Structure: Perfect Competition, Monopoly, and Monopolistic Competition

A monopolist's marginal revenue is below market price.

A perfectly competitive firm is selling 300 units of output per week at a price of $1,050. Average total cost is $1,010, average variable cost is $990, and marginal cost is $1,100. From this information, it is clear that the firm

-Refer to the monopoly market graph. If the monopolist is maximizing profit, then profit is approximately equal to

Use the following to answer questions below: -Which of the following is a characteristic of both monopolistic competition and monopoly?

Figure 2 -Refer to the Figure 2 which represents the market demand for a monopolist. The monopolist can maximize profit by charging approximately

Use the following to answer questions below: -Refer to the competitive market graph. If market price is equal to $60,

The market demand function for a product sold by a monopolist is given below: QD=20−PQ D = 20 - PQD=20−P The monopolist's marginal cost function is given below: MC=−10+3QM C = - 10 + 3 QMC=−10+3Q Calculate the equilibrium price and quantity.

The market demand function for a product sold by a monopolist is given below: QD=2500−10PQ D = 2500 - 10 PQD=2500−10P The monopolist's marginal cost function is given below: MC=10+QM C = 10 + QMC=10+Q Calculate the equilibrium price and quantity.

In the short run, a monopolist will shut down if it is producing a level of output where marginal revenue is equal to short-run marginal cost and price is

The market demand function for a product sold by a monopolist is given below: QD=120−4PQ D = 120 - 4 PQD=120−4P The monopolist's marginal cost function is given below: MC=1.5QM C = 1.5 QMC=1.5Q Calculate the equilibrium price and quantity.

A firm has the following total revenue and total costs functions. TR=9Q-Q², TC=Q²-Q Compute the optimal quantity the firm should produce and sell.

The demand function for a product sold by a monopolistically competitive firm is given below: QD=250−PQ D = 250 - PQD=250−P The firm's marginal cost function is given below: MC=10+2QM C = 10 + 2 QMC=10+2Q Calculate the equilibrium price and quantity.

Use the following to answer questions below -Refer to the graph of demand and marginal revenue. If a profit-maximizing monopolist with a constant unit cost equal to $40 faces the demand curve plotted in the graph, then the monopolist's total profit

Monopolists always make economic profits.

Most markets are either perfectly competitive or monopolized.

A monopolized market is in long-run equilibrium when

Use the following to answer questions below: -A perfectly competitive firm is selling 300 units of output per week at a price of $100. Average total cost is $94, average variable cost is $89, and marginal cost is $97. From this information, it is clear that the firm

Commodities that sell for the same price are referred to as heterogeneous.

Use the following to answer questions below -Refer to the graph of unit cost curves 1. If the market price is 45, then a profit-maximizing competitive firm with these short-run unit cost curves

The shut-down point of a perfectly competitive firm is at the minimum point on its short-run average variable cost curve.

The Nature and Scope of Managerial Economics

Demand, Supply, and Equilibrium Analysis

Optimization Techniques and New Management Tools

Demand Theory

Demand Estimation

Demand Forecasting

Production Theory and Estimation

Cost Theory and Estimation

Oligopoly and Firm Architecture

Game Theory and Strategic Behavior

Pricing Practices

Regulation and Antitrust: The Role of Government in the Economy

Risk Analysis

Long-Run Investment Decisions: Capital Budgeting

Filters

The market demand function for a product sold by a monopolist is given below: $Q D = 20 - P$ The monopolist's marginal cost function is given below: $M C = - 10 + 3 Q$ Calculate the equilibrium price and quantity.

The market demand function for a product sold by a monopolist is given below: $Q D = 2500 - 10 P$ The monopolist's marginal cost function is given below: $M C = 10 + Q$ Calculate the equilibrium price and quantity.

The market demand function for a product sold by a monopolist is given below: $Q D = 120 - 4 P$ The monopolist's marginal cost function is given below: $M C = 1.5 Q$ Calculate the equilibrium price and quantity.

The demand function for a product sold by a monopolistically competitive firm is given below: $Q D = 250 - P$ The firm's marginal cost function is given below: $M C = 10 + 2 Q$ Calculate the equilibrium price and quantity.