QUESTION 15 Which is the correct formula to calculate marginal revenue for a monopolistically competitive firm? O Total Revenue/Quantity O Change in Total Revenue/Change in Quantity O Average Total Revenue/Quantity O Price x quantity sold QUESTION 16 One similarity between monopoly and monoplistic competition is O in both markets price is greater than marginal revenue O in both markets there are a lot of sellers O in both market the firm always earn profits O in both market there is free entry and exit

QUESTION 15 Which is the correct formula to calculate marginal revenue for a monopolistically competitive firm? O Total Revenue/Quantity O Change in Total Revenue/Change in Quantity O Average Total Revenue/Quantity O Price x quantity sold QUESTION 16 One similarity between monopoly and monoplistic competition is O in both markets price is greater than marginal revenue O in both markets there are a lot of sellers O in both market the firm always earn profits O in both market there is free entry and exit

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Table 15-9 Consider the following demand and cost information for a monopoly. Quantity Total Cost $6 $20 $34 $48 $62 $76 10 1 2 3 14 QUESTION 30 15 Refer to Table 15-9. What is the marginal revenue of the 3rd unit? O a. $20 b. $28 O c. $4 O d. $12 Price $32 $28 $24 $20 $16 $12 QUESTION 31 The fundamental source of monopoly power is O a. rising average total costs. O b. low fixed costs. O c. barriers to entry. O d. many buyers and sellers.
Few large firms Produces similar products, for example, Coke or Pepsi Provides a unique product Produces identical products (commodities) Many producers that sell differentiated products Price are determined by supply and demand, A. Perfect Competition O O O O O O B. Monopoly C. Oligopoly O O O O D. Monopolistic Competition O O O
Which of the following describes a monopolized market structure? O a. a market structure with a single buyer Ob. a single firm producing a highly differentiated product and serving the entire market C. many firms with no control over price producing identical products with no differentiation d. a few firms with no control over price producing highly differentiated products O e. a few firms with some control over price producing similar products that are close substitutes
Which of the following statements is true? OA. The marginal revenue of a monopolistically competitive firm will be always be positive. O B. The marginal revenue of a monopolistically competitive firm will be positive at high prices and negative at low prices. OC. Because the demand curve for a monopolistically competitive firm is downward - sloping its marginal revenue will be negative. O D. The marginal revenue of a monopolistically competitive firm will be positive at low prices and negative at high prices.
A natural monopoly exists when O producing a large output has significantly lower marginal cost than producing a small output. the good produced by a monopoly is classified as a natural product. exploitative business tactics are used to force other companies out of the market illegally. O the monopoly-level of market power develops naturally due to the company's high product quality.
I need help in these questions. Please I have 30 minutes only, Answer the questions correctly and do not make any mistake.
What is the "generic competition paradox"? Select one: O a. When the patent has expired and pricing is free, prescription tends to move towards innovative drugs with a patent. O b. It is a price discrimination mechanism observed in the United States when the patent has expired and pricing is free. O c. It is a price discrimination mechanism observed mainly in Europe when the patent has expired and pricing is free. O d. When the patent has expired and pricing is free, the price of generics falls to the marginal cost, so the revenues of the innovative firms are not sufficient to cover R&D costs of the drug whose patent has expired.
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7. Is monopolistic competition efficient? Suppose that a company operates in the monopolistically competitive market for rugby kits. The following graph shows the demand curve, marginal revenue (MR) curve, marginal cost (MC) curve, and average total cost (ATC) curve for the firm. Place a black point (plus symbol) on the graph to indicate the long-run monopolistically competitive equilibrium price and quantity for this firm. Next, place a grey point (star symbol) to indicate the minimum average total cost the firm faces and the quantity associated with that cost. PRICE (Dolars per 3822ESRR 2 100 70 20 0 MO 6 19 20 ATC MR 30 AS 50 40 70 QUANTITY (Thousands of kits); Demand 8 100 Mon Comp Outcome Min Unit Cost C
Assuming that the monopolistic competitor faces the demand and costs depicted below and finds the profit maximizing level of output, what will be the firm's profit? 36 32 28 24 20 16 12 8 4 O O 1 O MC1 ATC₁ FAVC₁ Select one: O a. $8 b. $-32 c. $-64 d. $12 x Incorrect. The profit maximizing output is 4 units where Marginal cost equals marginal revenue. At that output, use the demand curve to find the price and calculate total revenue. At that output, use the average cost curve to find the average cost and calculate total cost. Then calculate profit = total revenue - total cost. MR1 D₁ 2 3 4 5 6 7 8 9
$19 16 13 10 0 100 Multiple Choice O MC O O O 160 180 210 Quantity MR Refer to the diagram for a monopolistically competitive firm in short-run equilibrium. If this firm is currently producing and selling 210 units of output, we can conclude that this firm ATC Is maximizing economic profits. D Is earning economic profits that could be increased by raising price and lowering output. Is breaking even, but could earn profits by raising price and lowering output. Is earning economic profits that could be increased by lowering price and raising output.
Which of the following is a difference between monopolistic and perfect competition? O A. In perfect competition goods are identical whereas in monopolistic competition they are differentiated O B. In perfect competition firms always have zero economic profits, whereas in monopolistic competition firms always have positive economic profits O C. In monopolistic competition there are barriers to entry whereas in perfect competition there are none O D. In perfect competition the price is set by the market, but in monopolistic competition, the firm can charge whichever price they want