Consumer surplus is largest for: * O a perfectly competitive industry. O any price discriminating monopoly. O a single-price monopoly. O a perfectly price discriminating monopoly.
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- Which of the following statements about the firm depicted in the diagram is true? O A. The fact that this firm is a natural monopoly is shown by the continually declining market demand curve as output rises. O B. The fact that this firm is a natural monopoly is shown by the fact that marginal cost lies below the long-run average total cost where the firm maximizes its profits. OC. The fact that this firm is a natural monopoly is shown by the continually declining marginal revenue curve as output rises. O D. The fact that this firm is a natural monopoly is shown by the long-run average total cost curve still falling when it crosses the demand curve. Price and cost per unit 905 70 59 35 20 0 MA 580 835 1,740 1,900 2,204 MC Demand ATC QuantityThe graph below shows the demands and marginal revenue in two markets, 1 and 2, for a price discriminating firm along with total marginal revenue, MRT, and marginal cost: 100 80 60 S 40 0 100 200 300 400 M Multiple Choice 500 Quantity How should the firm allocate sales between the two markets? O Multiple Choice O MM₂ O MO O 0₂ LLL 600 How should the firm allocate sales between the two markets? O MRT 700 600 150 in each market D₂ I 900 1000 250 in market 1, 200 in market 2 150 in market 1, 300 in market 2 200 in each market 300 in market 1, 100 in market 2Quantity Price 0 20 1 18 2 16 3 14 4 12 5 10 Are the price and quantity combinations above for a perfectly competitive industry? Select one: O a. No, they are not because the demand curve should be perfectly elastic. O b. No, because the quantities are too low. O c. Yes, they are because the demand curve is downward sloping. O d. Yes, they are because the price falls the same amount for each increase in quantity. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
- In order for price discrimination to work, three conditions must be fulfilled. Which of the following is not one of those conditions? O a. The seller must be able to identify and separate different groups of buyers. O b. It must be impossible to resell the product. Oc. The product must be a necessity. Od. The different groups of buyers must have different elasticities of demand.Refer to Table 1. Over which range of output is average revenue equal to price? Table 1 OO Quantity Price $5 $5 $5 $5 $5 $5 $5 $5 $5 $5 2 3 4 5 6 7 9 1 to 5 units 3 to 7 units 5 to 9 units 1 Average revenue is equal to price over the entire range of output.1
- The marginal product of labor curve shows the change in total product resulting from a: O a. change in the cost of a variable resource. O b. one-unit increase in the quantity of a particular resource used, letting other resources vary. O c. change in the cost of a fixed resource. O d. one-unit increase in the quantity of a particular resource used, holding constant other resources. A cartel is a. a market structure with a large number of small firms. O b. another name for an oligopoly. O c. a market with only two firms. O d. a group of firms acting together to raise price, decrease output, and increase economic profit. Which of the following is a variable cost? a. None of the choices are variable costs O b. Interest payments O c. Property taxes O d. Raw materials costsFor a firm in a perfectly competitive output market (as covered in Chapter 8), price per unit of the good is equal to marginal revenue. This relationship between price and marginal revenue is due to which of the following assumptions about a firm in a perfectly competitive output market: O a. Firms are price takers. O b. Downward-sloping market demand curve. O c. No barriers to entry. O d. Upward-sloping market supply curve.QUESTION 8 Which of the following is true for monopoly and perfect competition? O A. The demand for the individual firm's product is perfectly elastic. O B. Economic profits can be sustained indefinitely over time. OC. Marginal revenue is horizontal at the industry equilibrium price. O D. Profits are maximized by producing at the level of output where marginal revenue is equal to marginal cost
- 4. Is consumer surplus higher in a competitive market or a monopoly? What about producer surplus?Consider a market in which supply and demand are both unit elastic at the equilibrium (equals 1 in absolute value). Which of the following statements is true? a. Consumer and producer surplus are equal. O b. None of the other answers are correct. O c. Consumer surplus is larger than producer surplus. O d. Producer surplus is larger than consumer surplus.✓ Question Completion Status: A non- competitive firm's demand curve is P = 10-4Q. So its MR is O 5-2Q O 10-40 10-8Q 05-Q QUESTION 3 For a non-competitive firm with a demand curve P = 1800-2Q and marginal costs of MC = $200, how much is the equilibrium quantity (Q)? 360 400 560 620 QUESTION 4 For a non-competitive firm with a demand curve P = 1800-2Q and marginal costs of MC = $200, how much is the equilibrium price (P*)? O $500 (4750 Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Ar