1) The "Profit-Max/Loss-Min/Shutdown Rule" applies to:Group of answer choicesPure Monopoly onlyPerfect Competition onlyMost market structuresAll market structures3) A firm in a monopoly market structure always operates at an economic profit.Group of answer choicesTrueFalse4) Comparing monopoly and competitive market structures, "Deadweight Loss" refers to:Group of answer choicesUnderground markets developing to supply the monopoly good.Shortages caused by high monopoly pricing.The production gap resulting from under-allocation of resources.Surpluses caused by monopoly underproduction.5) In order to engage in price discrimination, which of the following must be true?Group of answer choices.Market can be segmentedFirm has monopoly powerAll of theseGoods cannot be resold6) Suppose society decides a monopoly must produce at an allocatively efficient level. Therefore it regulates the market sothat the market price is equal to marginal cost (P = MC), we call this the:Group of answer choicesFair-Return PriceSocially Optimal PriceSocial Construct PriceMonopoly Market Price7) Suppose a society does not wish to be forced to subsidize a monopoly producing at an allocatively efficient level.However, they are also unwilling to allow the monopoly to set its own production level. This "Fair-Return Price" leveloccurs when:Group of answer choicesP = MCMR = MCP = MRP = ATC8)Since firms that are not in perfect competition face downward-sloping demand curves, we know that to increase salesquantity they must lower prices. As a result:Group of answer choicesProduct Price is less than Marginal RevenuePrice and Revenue are no longer relatedPrice and Revenue are equal to each otherMarginal Revenue is less than Product Price9)Even if their business costs are identical, Monopoly market structures generally produce fewer goods and services than abusiness in a Purely Competitive market. However, business costs for a monopoly market structure are usually verydifferent from the competitive model for variety of reasons.Which of the following does NOT affect business costs in a monopoly market?Group of answer choicesHigher Average Wages.Rent-Seeking ExpensesPerfectly Elastic DemandEconomies of Scale

The profit-maximization rule is a major idea in economics and business the board. It addresses the…

Answered: 1) The "Profit-Max/Loss-Min/Shutdown…

1) The "Profit-Max/Loss-Min/Shutdown Rule" applies to: Group of answer choices Pure Monopoly only Perfect Competition only Most market structures All market structures

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Publisher:NEWNAN

Chapter1: Making Economics Decisions

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Question

1) The "Profit-Max/Loss-Min/Shutdown Rule" applies to:
Group of answer choices
Pure Monopoly only
Perfect Competition only
Most market structures
All market structures
3) A firm in a monopoly market structure always operates at an economic profit.
Group of answer choices
True
False
4) Comparing monopoly and competitive market structures, "Deadweight Loss" refers to:
Group of answer choices
Underground markets developing to supply the monopoly good.
Shortages caused by high monopoly pricing.
The production gap resulting from under-allocation of resources.
Surpluses caused by monopoly underproduction.
5) In order to engage in price discrimination, which of the following must be true?
Group of answer choices.
Market can be segmented
Firm has monopoly power
All of these
Goods cannot be resold
6) Suppose society decides a monopoly must produce at an allocatively efficient level. Therefore it regulates the market so
that the market price is equal to marginal cost (P = MC), we call this the:
Group of answer choices
Fair-Return Price
Socially Optimal Price
Social Construct Price
Monopoly Market Price
7) Suppose a society does not wish to be forced to subsidize a monopoly producing at an allocatively efficient level.
However, they are also unwilling to allow the monopoly to set its own production level. This "Fair-Return Price" level
occurs when:
Group of answer choices
P = MC
MR = MC
P = MR
P = ATC
8)
Since firms that are not in perfect competition face downward-sloping demand curves, we know that to increase sales
quantity they must lower prices. As a result:
Group of answer choices
Product Price is less than Marginal Revenue
Price and Revenue are no longer related
Price and Revenue are equal to each other
Marginal Revenue is less than Product Price
9)
Even if their business costs are identical, Monopoly market structures generally produce fewer goods and services than a
business in a Purely Competitive market. However, business costs for a monopoly market structure are usually very
different from the competitive model for variety of reasons.
Which of the following does NOT affect business costs in a monopoly market?
Group of answer choices
Higher Average Wages.
Rent-Seeking Expenses
Perfectly Elastic Demand
Economies of Scale

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