1-5. Write True if the statement is always correct for imperfect markets, otherwise, write False and explain. Write True if the statement is always correct for imperfect markets, otherwise, write False.1. Laguna Waters Co. profits for being the sole supplier of tap water in Laguna.2. Monopolistic Competition uses efficient pricing methods to minimize welfare loss.3. If there are no barriers to entry and significant cost advantages in the production of oil, there will bemore sellers in the industry and oil prices will be lower.4. Oligopolistic oil companies produce and sell where the price is greater than or equal to the marginalcost of production.5. Patents make some pharmaceutical drugs more expensive.II. Multiple Choice:For items 6-10, refer to this table.Q0123456789101112131415P1201181161141121101081061041021009896949290TR0118232342448550648742832918100010781152122212881350MR11811411010610298949086827874706662TC4004254464654855065285545866256777408148999971108MCProfitMarginalProfit MR96888274110 115MCMRAC11. What is the revenue when MR = 74?a. 8,140 b. 10,120 c. 10,560 d. There's not enough information to answer the question12. What is the revenue at price level where P = 600?a. 8,140 b. 10,1560 c. 10,120 d. There's not enough information to answer the question13. Suppose MR = 82 at Q = 110, should the firm produce?a. Yes b. No c. Maybe d. There's not enough information to answer the question14. Should the firm produce when MR = 65?a. Yes b. No c. Maybe d. There's not enough information to answer the question15. What is the profit at MR = 74?a. 75,500 b. 1,540 c. 1,880 d. There's not enough information to answer the question

An imperfect market is defined as the market that does not meet the standers of perfectly…

Write True if the statement is always correct for imperfect markets, otherwise, write False. 1. Laguna Waters Co. profits for being the sole supplier of tap water in Laguna. 2. Monopolistic Competition uses efficient pricing methods to minimize welfare loss. 3. If there are no barriers to entry and significant cost advantages in the production of oil, there will be more sellers in the industry and oil prices will be lower. 4. Oligopolistic oil companies produce and sell where the price is greater than or equal to the marginal cost of production. 5. Patents make some pharmaceutical drugs more expensive.

Write True if the statement is always correct for imperfect markets, otherwise, write False. 1. Laguna Waters Co. profits for being the sole supplier of tap water in Laguna. 2. Monopolistic Competition uses efficient pricing methods to minimize welfare loss. 3. If there are no barriers to entry and significant cost advantages in the production of oil, there will be more sellers in the industry and oil prices will be lower. 4. Oligopolistic oil companies produce and sell where the price is greater than or equal to the marginal cost of production. 5. Patents make some pharmaceutical drugs more expensive.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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