1. A monopsonist maximizes profit when Select one: a.marginal revenue product of labor equals marginal cost. b.its marginal revenue product of labor equals its marginal expenditure on labor. c.marginal revenue equals marginal cost. d.marginal revenue product is set equal to zero. 2. During the winter months, the price of natural gas is high. During the summer months, the price of natural gas is low. This could be an example of Select one: a.third-degree price discrimination. b.second-degree price discrimination. c.bundling. d.first-degree price discrimination 3. What of the following is completely true in long run, monopolistically competitive equilibrium? Select one: a.the slope of the demand and average cost curves are the same, P = MC, and MC = MR. b.the slope of the demand and average cost curves are the same, P > MC, and MC = MR. c.the slope of the demand and average cost curves are negative, P > MC, and MC > MR d.the slope of the demand and average cost curves are positive, P > MC, and MC = MR
1. A monopsonist maximizes profit when Select one: a.marginal revenue product of labor equals marginal cost. b.its marginal revenue product of labor equals its marginal expenditure on labor. c.marginal revenue equals marginal cost. d.marginal revenue product is set equal to zero. 2. During the winter months, the price of natural gas is high. During the summer months, the price of natural gas is low. This could be an example of Select one: a.third-degree price discrimination. b.second-degree price discrimination. c.bundling. d.first-degree price discrimination 3. What of the following is completely true in long run, monopolistically competitive equilibrium? Select one: a.the slope of the demand and average cost curves are the same, P = MC, and MC = MR. b.the slope of the demand and average cost curves are the same, P > MC, and MC = MR. c.the slope of the demand and average cost curves are negative, P > MC, and MC > MR d.the slope of the demand and average cost curves are positive, P > MC, and MC = MR
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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1. A monopsonist maximizes profit when
Select one:
a.marginal revenue product of labor equals marginal cost.
b.its marginal revenue product of labor equals its marginal expenditure on labor.
c.marginal revenue equals marginal cost.
d.marginal revenue product is set equal to zero.
2. During the winter months, the price of natural gas is high. During the summer months, the price of natural gas is low. This could be an example of
Select one:
a.third-degree price discrimination .
b.second-degree price discrimination.
c.bundling.
d.first-degree price discrimination
3. What of the following is completely true in long run, monopolistically competitive equilibrium?
Select one:
a.the slope of the demand and average cost curves are the same, P = MC, and MC = MR.
b.the slope of the demand and average cost curves are the same, P > MC, and MC = MR.
c.the slope of the demand and average cost curves are negative, P > MC, and MC > MR
d.the slope of the demand and average cost curves are positive, P > MC, and MC = MR
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