7. At price OG, the area of which rectangle represents total revenue for the profit-maximizing per- fect competitor? (A) OGKC (B) OFIC (C) FGKJ (D) EFJH 8. At output OC, total variable cost is represented by the area of which rectangle? (C) OEHC (A) OGKC (B) FGK) (D) OFIC 9. At price OG, profits for the perfect competitor are represented by the area of which rectangle? (A) OGKC (B) OFIC (C) FGKJ (D) OEHC
7. At price OG, the area of which rectangle represents total revenue for the profit-maximizing per- fect competitor? (A) OGKC (B) OFIC (C) FGKJ (D) EFJH 8. At output OC, total variable cost is represented by the area of which rectangle? (C) OEHC (A) OGKC (B) FGK) (D) OFIC 9. At price OG, profits for the perfect competitor are represented by the area of which rectangle? (A) OGKC (B) OFIC (C) FGKJ (D) OEHC
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
Related questions
Question
part 7 8 9
Transcribed Image Text:A Quick Review of Perfect Competition and Monopoly
Figure 39.1
Graphs of Monopoly and Perfect Competition
Monopoly
Perfect Competition
R
MC
ATC
MC
ATC
AVC
K
D= MR
(G
.M.
H.
MR
E LM
QUANTITY
A
B
D
QUANTITY
These questions are based on Figure 39.1. Underline the correct answer. Assume that the monopoly
can set only one price. Both the monopoly and the perfect competitor seek to maximize profits.
1. A monopoly firm will maximize profits at what price?
(B) OB
(A) OA
(C) OC
(D) OR
2. Economic profits for the monopoly firm are represented by the area of which rectangle?
(C) AJHB
(A) OCGE
(B) OAJE
(D) BAJN
3. Total costs for the monopoly firm are represented by the area of which rectangle?
(A) BKLO
(B) CGEO
(C) AJEO
(D) BHEO
4. The total revenue for the monopoly firm is represented by the area of which rectangle?
(C) AJHB
(A) OCGE
(B) OAJE
(D) BAJH
5. The perfect competitor will maximize profits at what output level?
(в) ов
(A) OA
(C) 0G
(D) OD
COSTS/REVENUE (DOLLARS)
-------
COSTS/REVENUE (DOLLARS)
Transcribed Image Text:6. The perfect competitor will shut down below which price-output relationship?
(A) K
(C) L
(B) M
(D) R
7. At price OG, the area of which rectangle represents total revenue for the profit-maximizing per-
fect competitor?
(A) OGKC
(B) OFJC
(C) FGKJ
(D) EFJH
8. At output OC, total variable cost is represented by the area of which rectangle?
(A) OGKC
(B) FGKJ
(C) OEHC
(D) OFIC
9. At price OG, profits for the perfect competitor are represented by the area of which rectangle?
(C) FGKJ
(A) OGKC
(B) OFJC
(D) OEHC
10. At what price-output relationship will a perfect competitor operate in the long run?
(A) K
(B) L
(C) M
(D) R
11, For the monopolist, what is the area of consumer surplus?
(B) AJGC
(A) ABHJ
(C) ARJ
(D) ARJE
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 3 images
Recommended textbooks for you
Understanding Business
Management
ISBN:
9781259929434
Author:
William Nickels
Publisher:
McGraw-Hill Education
Management (14th Edition)
Management
ISBN:
9780134527604
Author:
Stephen P. Robbins, Mary A. Coulter
Publisher:
PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract…
Management
ISBN:
9781305947412
Author:
Cliff Ragsdale
Publisher:
Cengage Learning
Understanding Business
Management
ISBN:
9781259929434
Author:
William Nickels
Publisher:
McGraw-Hill Education
Management (14th Edition)
Management
ISBN:
9780134527604
Author:
Stephen P. Robbins, Mary A. Coulter
Publisher:
PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract…
Management
ISBN:
9781305947412
Author:
Cliff Ragsdale
Publisher:
Cengage Learning
Management Information Systems: Managing The Digi…
Management
ISBN:
9780135191798
Author:
Kenneth C. Laudon, Jane P. Laudon
Publisher:
PEARSON
Business Essentials (12th Edition) (What's New in…
Management
ISBN:
9780134728391
Author:
Ronald J. Ebert, Ricky W. Griffin
Publisher:
PEARSON
Fundamentals of Management (10th Edition)
Management
ISBN:
9780134237473
Author:
Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo
Publisher:
PEARSON