Question 1

The best or optimum level of output for a perfectly competitive firm is given by the point:

Accepted Answer

A) MR = AC 
B) MR = MC 
C) MR exceeds MC by the greater amount 
D) MR = MC and MC is rising 
A) MR = AC 
B) MR = MC 
C) MR exceeds MC by the greater amount 
D) MR = MC and MC is rising D

Question 2

A profit-maximizing monopoly firm with a demand curve P = 50 ? Q is a perfect pricediscriminator. If it has marginal costs of Rs. 10/unit and fixed costs of Rs. 30, it will produce _____ units of output and will make______ profit.

Accepted Answer

A) 40; Rs. 400 
B) 40; Rs. 770 
C) 20; Rs. 370 
D) 20; Rs. 400 
A) 40; Rs. 400 
B) 40; Rs. 770 
C) 20; Rs. 370 
D) 20; Rs. 400 B

Question 3

P = a - bQ is the demand cure of a monopolist. Which of the following statements is true?

Accepted Answer

A) AR & MR are equal 
B) The rate of decline of MR is twice the rate of decline of AR 
C) The demand curve has unit elasticity 
D) slope of MR is zero. 
A) AR & MR are equal 
B) The rate of decline of MR is twice the rate of decline of AR 
C) The demand curve has unit elasticity 
D) slope of MR is zero. B

Question 4

A perfectly competitive firm should reduce output or shut down in the short run if market price is equal to 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 5

If the demand curve for a monopolist is P = 100 -20Q, then the marginal revenue of that firm is given by the equation:

Accepted Answer

A) MR = 200 ? 20Q 
B) MR = 50 ? 40Q 
C) MR = 100 ? 20Q 
D) MR = 100 ? 40Q 
A) MR = 200 ? 20Q 
B) MR = 50 ? 40Q 
C) MR = 100 ? 20Q 
D) MR = 100 ? 40Q

Question 6

In an input-output matrix, the principal diagonal of this matrix represents the amount of input each industry takes from ___output.

Accepted Answer

A) other industry's 
B) government sector's 
C) household sector's 
D) its own output 
A) other industry's 
B) government sector's 
C) household sector's 
D) its own output

Question 7

One difference between perfect competition and monopolistic competition is that:

Accepted Answer

A) In perfect competition, the products are slightly differentiated between firms 
B) There are a larger number of firms in monopolistic competition 
C) There are a smaller number of firms in perfectly competitive industries 
D) Firms in monopolistic competition have some degree of market power 
A) In perfect competition, the products are slightly differentiated between firms 
B) There are a larger number of firms in monopolistic competition 
C) There are a smaller number of firms in perfectly competitive industries 
D) Firms in monopolistic competition have some degree of market power

Question 8

In monopoly, if p = Rs. 10 at the point on the demand curve where ? = 0.5, MR is:

Accepted Answer

A) 5 
B) 0 
C) ?1 
D) ?10 
A) 5 
B) 0 
C) ?1 
D) ?10

Question 9

A price discriminating Monopolist is considered more efficient than a single prices monopolist because:

Accepted Answer

A) a price discriminating Monopolist knows its consumers better 
B) a price discriminating Monopolist can set prices more efficiently 
C) a price discriminating Monopolist produces a higher level of output 
D) a price discriminating Monopolist can produce it's output at a lower cost 
A) a price discriminating Monopolist knows its consumers better 
B) a price discriminating Monopolist can set prices more efficiently 
C) a price discriminating Monopolist produces a higher level of output 
D) a price discriminating Monopolist can produce it's output at a lower cost

Question 10

If the demand facing a monopolist is P = 100 ? 10Q and marginal cost is constant at 20, then the profit maximizing price and quantity for this monopolist are:

Accepted Answer

A) P = 60 and Q = 4 
B) P = 20 and Q = 8 
C) P = 90 and Q = 10 
D) P = 4 and Q = 60 
A) P = 60 and Q = 4 
B) P = 20 and Q = 8 
C) P = 90 and Q = 10 
D) P = 4 and Q = 60

Question 11

In monopoly, when the demand curve is elastic, MR is:

Accepted Answer

A) 1 
B) 0 
C) positive 
D) negative 
A) 1 
B) 0 
C) positive 
D) negative

Question 12

In a monopoly, marginal revenue is:

Accepted Answer

A) equal to AR 
B) less than AR 
C) more than AR 
D) initially less than AR then more than AR 
A) equal to AR 
B) less than AR 
C) more than AR 
D) initially less than AR then more than AR

The best or optimum level of output for a perfectly competitive firm is given by the point:

A profit-maximizing monopoly firm with a demand curve P = 50 ? Q is a perfect pricediscriminator. If it has marginal costs of Rs. 10/unit and fixed costs of Rs. 30, it will produce _ units of output and will make__ profit.

P = a - bQ is the demand cure of a monopolist. Which of the following statements is true?

A perfectly competitive firm should reduce output or shut down in the short run if market price is equal to marginal cost and price is:

If the demand curve for a monopolist is P = 100 -20Q, then the marginal revenue of that firm is given by the equation:

In an input-output matrix, the principal diagonal of this matrix represents the amount of input each industry takes from ___output.

One difference between perfect competition and monopolistic competition is that:

In monopoly, if p = Rs. 10 at the point on the demand curve where ? = 0.5, MR is:

A price discriminating Monopolist is considered more efficient than a single prices monopolist because:

If the demand facing a monopolist is P = 100 ? 10Q and marginal cost is constant at 20, then the profit maximizing price and quantity for this monopolist are:

In monopoly, when the demand curve is elastic, MR is:

In a monopoly, marginal revenue is:

Econometrics and Keynesian Linear Consumption Function

Understanding Statistical Relationships and Models in Economics

Regression Analysis and Estimation

Econometrics and Regression Analysis

Economics Functions and Elasticities

Economics and Linear Programming: Understanding Concepts and Terminologies

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Exam 7: Market Structures and Pricing Strategies

The best or optimum level of output for a perfectly competitive firm is given by the point:

A profit-maximizing monopoly firm with a demand curve P = 50 ? Q is a perfect pricediscriminator. If it has marginal costs of Rs. 10/unit and fixed costs of Rs. 30, it will produce _____ units of output and will make______ profit.

P = a - bQ is the demand cure of a monopolist. Which of the following statements is true?

A perfectly competitive firm should reduce output or shut down in the short run if market price is equal to marginal cost and price is:

If the demand curve for a monopolist is P = 100 -20Q, then the marginal revenue of that firm is given by the equation:

In an input-output matrix, the principal diagonal of this matrix represents the amount of input each industry takes from ___output.

One difference between perfect competition and monopolistic competition is that:

In monopoly, if p = Rs. 10 at the point on the demand curve where ? = 0.5, MR is:

A price discriminating Monopolist is considered more efficient than a single prices monopolist because:

If the demand facing a monopolist is P = 100 ? 10Q and marginal cost is constant at 20, then the profit maximizing price and quantity for this monopolist are:

In monopoly, when the demand curve is elastic, MR is:

In a monopoly, marginal revenue is:

Econometrics and Keynesian Linear Consumption Function

Understanding Statistical Relationships and Models in Economics

Regression Analysis and Estimation

Econometrics and Regression Analysis

Economics Functions and Elasticities

Economics and Linear Programming: Understanding Concepts and Terminologies

Filters

A profit-maximizing monopoly firm with a demand curve P = 50 ? Q is a perfect pricediscriminator. If it has marginal costs of Rs. 10/unit and fixed costs of Rs. 30, it will produce _ units of output and will make__ profit.