Question : 31.A monopolist sets price at a point the _______ curve, : 1233113

 

31.A monopolist sets price at a point on the _______ curve, corresponding to the rate of output determined by the intersection of _______.   

A. Demand; marginal revenue and marginal cost

B. Marginal revenue; marginal revenue and marginal cost

C. Average total cost; price and marginal cost

D. Demand; average total cost and marginal cost

32.A monopolist sets its price:   

A. Below the demand curve.

B. Without constraints since there is no competition.

C. At the rate of output where marginal revenue equals marginal cost.

D. At the minimum of the long-run average total cost curve.

33.The price charged by a profit-maximizing monopolist occurs at:   

A. The minimum of the average total cost curve.

B. The price where marginal cost equals marginal revenue.

C. A price on the demand curve above the intersection where marginal revenue equals marginal cost.

D. A price on the average cost curve below the point where marginal revenue equals marginal cost.

34.In terms of pricing, which of the following is not true for a monopolist?   

A. In the long-run economic profit is impossible.

B. Marginal revenue is always less then the price charged.

C. If marginal revenue is greater then marginal cost increasing output will increase profits (decrease loss).

D. Maximum profit (minimum loss) occurs where marginal revenue equals marginal cost.

35.Which of the following is true for a monopoly?   

A. The intersection of total revenue and total cost establishes the profit-maximizing rate of output.

B. The demand curve indicates the highest price consumers are willing to pay for the rate of output.

C. Several different prices are compatible with the profit-maximizing rate of output.

D. The total revenue curve indicates the highest price consumers are willing to pay for the rate of output.

36.Total profit can be calculated as:   

A. Average total cost multiplied by price.

B. Total revenue divided by the quantity sold.

C. The difference between price and average total cost multiplied by the quantity sold.

D. Price and average total cost added together and then multiplied by the quantity sold.

37.For a monopoly in long-run equilibrium, economic profits are likely to be:   

A. Greater than zero.

B. Zero.

C. Less than zero.

D. Predatory.

38.A monopolist:   

A. Maximizes profit at the output where price equals marginal cost.

B. Charges a higher price than a competitive firm, ceteris paribus.

C. Is a price taker since it has market power.

D. Cannot earn an economic profit in the long run.

39.Which of the following statements is true, assuming the same cost and demand conditions?   

A. A monopoly produces less output than a competitive firm.

B. A monopoly cannot earn an economic profit in the long run.

C. A monopoly charges a lower price than a competitive firm.

D. A monopoly maximizes profit where price equals marginal cost.

40.A monopoly realizes larger profits than a comparable competitive market by charging a _______ price and producing _______ output.   

A. Higher; the same level of

B. Higher; more

C. Lower; more

D. Higher; less

 

 

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