ECON101 Lecture Notes - Lecture 10: Deadweight Loss, Perfect Competition, Competitive Equilibrium

The market demand is P=100-1.5Q and marginal & average costs are constant at 10 (MC=AC=10) find the monopoly price and quantity. find the perfect competition price and quantity. calculate profit, social welfare(consumer and producer surpluses), and dead weight loss in both situations. if a duopoly exists and produces quantity Q=50, calculate the price and profit of each firm

Which of the following is TRUE?

Select one:

a. Monopoly results in a higher quantity of output being sold compared with perfect competition.

b. Price discrimination occurs when there are differences in prices that reflect differences in marginal cost.

c. Charging all customers the same price when costs vary can actually be a case of price discrimination.

d. Price discrimination guarantees that the monopolist will make a profit.

Which of the following statements is TRUE?

Select one:

a. At the monopolist's equilibrium, resources are being efficiently allocated.

b. With a monopoly, the value to society of the last unit produced is less than it's production cost.

c. Monopolists raise the price and restrict production, compared to a competitive situation.

d. A monopolist always produces a higher level of output than would be produced if the market were competitive.

21)

Compared to the results in a perfectly competitive market, a monopoly does which of the following?

22)

"X-inefficiency" refers to the idea that

23)

Firms in which of the following market structures can engage in price discrimination?

24)

Monopolistic competition and perfect competition are in all of the following ways except

25)

To get rid of excess capacity from the monopolistic competition in the long run, what would have to be given up?