A Quick Review of Perfect Competition and MonopolyFigure 39.1Graphs of Monopoly and Perfect CompetitionMonopolyPerfect CompetitionRMCATCMCATCAVCKD= MR(G.M.H.MRE LMQUANTITYABDQUANTITYThese questions are based on Figure 39.1. Underline the correct answer. Assume that the monopolycan 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) OR2. Economic profits for the monopoly firm are represented by the area of which rectangle?(C) AJHB(A) OCGE(B) OAJE(D) BAJN3. Total costs for the monopoly firm are represented by the area of which rectangle?(A) BKLO(B) CGEO(C) AJEO(D) BHEO4. The total revenue for the monopoly firm is represented by the area of which rectangle?(C) AJHB(A) OCGE(B) OAJE(D) BAJH5. The perfect competitor will maximize profits at what output level?(в) ов(A) OA(C) 0G(D) ODCOSTS/REVENUE (DOLLARS)-------COSTS/REVENUE (DOLLARS)

The structure of a market where there exists a single seller is known as a monopoly. It has the…

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) 0C (D) OR

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) 0C (D) OR

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

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Question

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)

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