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28 Sep 2019
1. Which of the following is true under a monopoly?
- A. Monopolist chooses the highest possible price.
- B. Monopolist chooses a price that is always higher than marginal cost of production.
- C. Marginal revenue of a monopolist is price.
- D. None of the above are true for monopoly.
2. You are the manager of a monopoly that faces a demand curve described by P = 230 -20Q. Your costs are C = 5 +30Q. The profit-maximizing output for your firm is:
- A. 4
- B. 5
- C. 6
- D. 7
3. Which of the following is true?
- A. A monopolist produces on the inelastic portion of its demand.
- B. A monopolist always earns an economic profit.
- C. The more inelastic the demand, the closer marginal revenue is to price.
- D. In the short run a monopoly will shutdown if P < AVC.
4. In a competitive industry with identical firms, long rum equilibrium is characterized by:
- A. P = AC
- B. P = MC
- C. MR = MC
- D. All of the above
5. You are the manager of a firm that sells its product in a competitive market at a price of $50. Your firm's cost function is C = 40 + 5Q2. Your firm's maximum profits are:
- A. 125
- B. 250
- C. 100
- D. 85
6. A perfectly competitive firm faces:
- A. A perfectly elastic demand function
- B. A perfectly inelastic demand function
- C. a demand function with unitary elasticity
- D. none of the above
1. Which of the following is true under a monopoly?
- A. Monopolist chooses the highest possible price.
- B. Monopolist chooses a price that is always higher than marginal cost of production.
- C. Marginal revenue of a monopolist is price.
- D. None of the above are true for monopoly.
2. You are the manager of a monopoly that faces a demand curve described by P = 230 -20Q. Your costs are C = 5 +30Q. The profit-maximizing output for your firm is:
- A. 4
- B. 5
- C. 6
- D. 7
3. Which of the following is true?
- A. A monopolist produces on the inelastic portion of its demand.
- B. A monopolist always earns an economic profit.
- C. The more inelastic the demand, the closer marginal revenue is to price.
- D. In the short run a monopoly will shutdown if P < AVC.
4. In a competitive industry with identical firms, long rum equilibrium is characterized by:
- A. P = AC
- B. P = MC
- C. MR = MC
- D. All of the above
5. You are the manager of a firm that sells its product in a competitive market at a price of $50. Your firm's cost function is C = 40 + 5Q2. Your firm's maximum profits are:
- A. 125
- B. 250
- C. 100
- D. 85
6. A perfectly competitive firm faces:
- A. A perfectly elastic demand function
- B. A perfectly inelastic demand function
- C. a demand function with unitary elasticity
- D. none of the above
Verified Answer
Vaishnavi KanukurtiLv10
28 Sep 2019
Jeffrey
JD Candidate at Stanford Law School30 Jun 2020
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