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.
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.
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
$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.
monopolistically competitive markets, zero economic profit is associated with: saved 1 out of question Select one: O a. Inefficient output and excess capacity. O b. Competitive equilibrium because other firms entered the market. O c No deadweight loss O d. Efficient output and no excess capacity. Clear my choice Australian Institute of Business & Management
QUESTION 1 There is free entry and exit in O only perfect competition O only in monopolistic competition both perfect competition and monopolistic competition O neither perfect competition nor in monopolistic competition QUESTION 2 The equality of marginal revenue and marginal cost to reach a profit maximization level applies to O perfectly competitive markets O monopoly markets O monopolistically competitive markets all kind of markets QUESTION 3 The correct formula to calculate marginal cost is O total cost/Quantity O change in total cost/change in quantity O total cost x quantity O average total cost/quantity O O
Intel and Advanced Micro Devices make most of the chips that power a PC. What makes the market for PC chips a duopoly? The PC chip market is a duopoly if O A. at the efficient scale, two firms can satisfy the market demand OB. each firm can divide its consumers into two categories-business consumers and household consumers O C. the two firms can charge different prices for the same quality of PC chip O D. the market produces two goods Assume that Intel and Advanced Micro Devices have identical costs. The graph shows the market demand curve. Draw the average total cost curve of one firm if the chip market produces 800 chips an hour and other firms are prevented from entering. Label the curve. Draw a point on the average total cost curve at the efficient scale. 110- 100- 90- 80+ 70- 60+ 50- 40- 30- 20+ 10- 0- Price (dollars per chip) 0 $800 200 400 800 600 Quantity (chips per hour) >>> Draw only the objects specified in the question. D 1000 Q Q 1200
Q TR MR TC MC Profit 60 12 1 54 15 2 48 21 3 42 30 36 42 30 57 The chart above summarizes the demand curve and total cost function faced by a firm with market power. The marginal revenue of the second unit of output is and the marginal cost of the second unit of output is O 48:42 O 96;21 O 42:6 O 48:21 * Previous Next MacBook Air F3 F4 F5 F6 2$ 4 % & 7 8
Which of the following does not describe a monopoly market? Select one: O a. Profit maximizing output is chosen, where marginal revenue equals marginal cost O b. A single seller and price maker O c. Price is higher than marginal cost or marginal revenue O d. No barriers to entry and/or exit Australian Institute of Business & Management trading as King's Own Institute
Exhibit 10.5 Price 3.25 3.00 2.50 0 700 1,000 MC MR ATC D = AR Quantity Exhibit 10.5 shows the demand, marginal revenue, and cost curves for a monopolistically competitive firm. At the profit-maximizing (or loss-minimizing) output and price, the firm would O a. have to expand to stay in business in the long run. O b. be better off shutting down, since total revenue does not cover fixed costs. O c. be experiencing an economic loss. O d. be earning an economic profit. O e. be earning zero economic profit.
250 225 Revenue Lost 200 175 150 Revenue Gained 125 Demand 100 75 50 25 3 4 7 8 9. 10 QUANTITY (Fire engines) Gilberto increase production from 7 to 8 fire engines because the dominates in this scenario. True or False: If Gilberto's Fire Engines were a competitive firm instead and $100,000 were the market price for an engine, decreasing its price from $100,000 to $50,000 would result in the same change in the production quantity and, thus, total revenue. O True O False acer Σ 2. 1. PRICE (Thousands of dollars per fire engine)
By approximately how much did the price of the heart drug for babies increase when a monopoly was established?