Question : 31) Monopoly allocatively inefficient because A) the price exceeds the marginal : 1384261

 

31) Monopoly is allocatively inefficient because

A) the price exceeds the marginal cost of the last unit produced.

B) the opportunity cost exceeds the marginal cost of the last unit produced.

C) the marginal cost exceeds the average cost for the last unit produced.

D) lower costs could be achieved.

E) the firm has no incentive to maximize profits.

32) Consider the efficiency of various market structures. In the absence of other market failures, allocative efficiency is achieved only under perfect competition because only this market structure results in

A) zero long-run profits.

B) P = MC.

C) complete freedom of entry and exit.

D) maximization of profits through competition.

E) productive efficiency.

33) If a perfectly competitive industry was suddenly monopolized without any change in cost conditions,

A) both price and quantity produced would increase.

B) both price and quantity produced would decrease.

C) price would increase and quantity produced would decrease.

D) price would decrease and quantity produced would increase.

E) there would be no change in either price or quantity produced.

34) In principle, a comparison of the long-run equilibrium of competitive and (single-price) monopoly industries leads to the following conclusion:

A) both the competitive industry and the monopoly will allocate resources efficiently.

B) the competitive industry is consistent with allocative efficiency whereas the monopoly is not.

C) neither industry is capable of allocative efficiency.

D) the competitive industry will achieve productive efficiency but the monopoly will not.

E) both the competitive industry and the monopoly will allocate resources inefficiently.

35) Refer to Figure 12-3. If the diagram is depicting a perfectly competitive industry, the equilibrium price and quantity is

A) P1 and q1.

B) P1 and q2.

C) P2 and q1.

D) P2 and q2.

E) P3 and q1.

36) Refer to Figure 12-3. If the diagram is depicting the market situation for a monopoly, the equilibrium price and quantity are

A) P1 and q1.

B) P1 and q2.

C) P2 and q1.

D) P2 and q2.

E) P3 and q1.

37) When comparing a perfectly competitive firm and a (single-price) monopolist, a major difference is that

A) the monopolist produces where MR = MC, but the perfect competitor does not.

B) the perfect competitor achieves productive efficiency, but the monopolist does not.

C) the perfect competitor produces where P = MC, but the monopolist does not.

D) the monopolist achieves allocative efficiency but the perfect competitor does not.

E) the perfect competitor minimizes its costs, but the monopolist does not.

38) Choose the statement that best compares the long-run equilibrium of a competitive industry with that in a monopolized industry (with a single price).

A) Resources will be allocated efficiently in both the competitive and monopolized industries.

B) Allocative efficiency will be achieved in the competitive, but not the monopolized industry.

C) Allocative efficiency is not possible in either industry.

D) Allocative efficiency will be achieved in the monopolized, but not the competitive industry.

E) It is not possible to make this comparison because firms in a competitive industry operate only in the short run.

39) In the absence of other market failures, allocative efficiency is achieved in a perfectly competitive industry because

A) firms do not need to maximize profits.

B) the industry produces a level of output such that the marginal cost of production is minimized.

C) the industry produces a level of output such that there are increasing returns to scale.

D) there are barriers to entry.

E) the industry produces a level of output such that the marginal cost to producers equals the marginal benefit to consumers.

40) Refer to Figure 12-4. What is the total revenue received by the sellers of this product at the allocatively efficient level of output?

A) $5

B) $125

C) $250

D) $375

E) $500

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more