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28 Sep 2019
1. The principle that a firm should produce up to the point where the marginal revenue (MR) from the sale of an extra unit of output is equal to the marginal cost (MC) of producing the extra unit applies: ( I put A)
to both perfectly competitive firms and monopolies
only to monopolies
only to perfectly competitive firms
only to firms that can employ discriminatory pricing strategies
2. If a monopolist or a perfectly competitive firm is producing at a break-even point, then: ( I put II, IV)
i. average revenue is equal to average variable cost
ii. average revenue is equal to the o average total cost
iii. total revenue is equal to total variable cost
iv. total revenue is equal to the total cost
i
ii
iii
I and iii
ii and iv
3. What do economies of scale, the exclusive ownership of essential raw materials used in the production process, and patents have in common? (I put A)
they are all barriers to entry
they all help explain why a monopolists demand and marginal revenue curves are identical
they must all be present before a monopolist may practice price discrimination
they all help explain why a firm's short-run average total cost curve is U-shaped
1. The principle that a firm should produce up to the point where the marginal revenue (MR) from the sale of an extra unit of output is equal to the marginal cost (MC) of producing the extra unit applies: ( I put A)
to both perfectly competitive firms and monopolies |
only to monopolies |
only to perfectly competitive firms |
only to firms that can employ discriminatory pricing strategies 2. If a monopolist or a perfectly competitive firm is producing at a break-even point, then: ( I put II, IV)
|
syedazmath1627Lv10
3 Feb 2023
Insha FatimaLv10
28 Sep 2019
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