22) Which of the foilowing is a legal barrier to entry? public franchise i) pate

Question

22) Which of the foilowing is a legal barrier to entry? public franchise i) patent A)?? only B) i and li C) i and i D) i, i, and ii E) i and i 23) Price discrimination is A) always illegal in the United States B) defined as charging the same price to all consumers. C) defined as charging different prices for different units D) setting the price to minimize the quantity sold E) Both answers A and C are correct 24) Which of the following is an example of price discrimination? A) UPS charges more if a package is sent from New York to Hawai and less fit is sent from New York to New Jersey 8) Frank's Furniture shop charges no delivery fee for funiture delivered within Dutchess County but charges $40 delivery fee outside of the county C) Albert pays 25 percent less on prescription drugs because he is a senior citizen. D) Only answers A and B are correct E) Answer A, answer B, and answer C are all correct. 25) The demand curve for a monopoly is A) horizontal because the demand is perfectly elastic. B) downward sloping C) vertical because the demand is perfectly inelastic. D) upward sloping E) undefined because it is the only supplier in the market. 26) If a monopoly wants to sell a greater quantity of output, it must A) lower its price. B) raise its price. C) tell consumers to buy more because its a monopolist. D) raise its marginal cost E) change its fixed costs. 27) A single-price monopoly has a marginal revenue curve that is A) horizontal and equal to price. B) downward sloping and below the demand curve C) upward sloping and equal to the supply curve. D) downward sloping and above the demand curve. E) vertical at the proft-maximizing quantity 28) To maxinize its profit, a single-price monopoly the amount of ouput so that ts margina revenue A) equals zero B) equals its marginal cost C) exceeds its marginal cost but not necessarily by as much as possible. D)¡s less than its marginal cost E) exceeds its marginal cost by as much as possible. and a single-price monopaly produces so 29) To maximize its profit, a perfectly competitive fim produces so that hat A) MR MC, MR> MC B) MR> MC, MR-MC C) MR- MC, MR- MC D) MR> MC, MR> MC E) P- ATC, P ATC

Explanation / Answer

22) Legal barrier to entry is government license, patent. Option C is correct.

23) Price discrimination is charging a different price for same goods and services for different units. In US price discrimination prohibits by Robinson-Patman Act. Option E is correct.

24) Price discrimination is charging a different price for same goods and services from different customers and or from different places and or for different units. So here option A, B, C all are correct. Therefore answer will be option E.

25) The demand curve for the monopoly is downward sloping. So the price that monopolist charge for each additional unit must fall as the monopolist increases output. Option B is correct.

26) If a monopoly wants to sell more output, it has to decrease its price. Option A is correct.

27) Marginal revenue curve is downward sloping below the demand curve for monopoly. Option B is correct.

28) In the monopoly, profit is maximized by producing at MR=MC. option B is correct.

29) In perfect competition and in monopoly profit is maximized by producing at MR=MC. Option C is correct.

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