1 How do monopolstic market structures determine prices to charge for good and s
ID: 1166626 • Letter: 1
Question
1
How do monopolstic market structures determine prices to charge for good and services?
A.) Price is read from the demand curve from the intersection of the profit to charge for goods and services?
B.) monoplistic market structures can price their goods and services at any point they wish
C.) price is read from the deamand curve from the average total cost (ATC) curve
D.) price is determined based on demand and supply
2
What is meant by disminishing marginal utility?
A.) total utility is falling
B.) marginal utility is increasing as each additional unit is consumed
C.) marginal utility is decreasing as each additional unit is consumed
D.) total utility is equal to one
3
A perfectly competitive market structure faces:
A.) A price floor
B.) market shortage
C.) A price ceiling
D.) market surplus
4
How does a monopolistic competitive market structure differ froma perfectly competitive market structure
A.) A monopolstic market structure is a price taker
B.) A monopolistic competitive market structure has many sellers and buyers
C.) A monopolistic competitive market structure faces a downward sloping demand curve and differentiated products or services
D.) A monopolistic competitive market structure and a perfectly competitive market structure maximize profits diffrently
5
All of teh following are characteristics of a perfectly competitive market structure except:
A.) Goods and services are differentiated
B.) All firms are price takers
C.) Little to no barriers to entry
D.) Similar vendors
6
Goods and services thatare essential to ones well being and daily life, the elasticity of demand would be:
A.) Positive
B.) Elastic
C.) negative
D.) inelastic
7
An oligopololistic market structure faces a(n):
A.) Downward sloping demand curve
B.) Upward sloping demand curve
C.) Kinked demand curve
D.) Inelastic demand curve
8
High barries to entry is at highest level, marginal utility is:
A.) Equal to zero
B.) Falling
C.) Equal to one
D.) Rising
9
Total surplus is equal to:
A.) Total surplus minus producer suplus
B.) Producer surplus minus consumer surplus
C.) Consumer surplus plus producer surplus
D.) Total surplus minus consumer surplus
10
What is the cause of scarcity?
A.) OPEC limiting the supply of oil
B.) Based on consumers who have unlimited wants
C.) Firms that employ first degree price discrimination
D.) based on consumers who have limited wants
Explanation / Answer
Answer 1 : Option C is correct. Monopolistic market charges the price where demand curve intersect along with ATC. The firm demand curve intersect to it's average total cost.
Answer 2 : Option C is correct. As diminishing Marginal utility shows that as output increases the marginal utility has been decreasing.
Answer 3: Option C is correct.Price ceiling has been imposed in the perfectly competitive market so that they are not able to charge higher price.
Answer 4 : Option C is correct. As it shows that monopolistic competition faces downward sloping demand curve and differentiated Product as compare to perfect competition.
Answer 5: Option A is correct. As in perfect competition good is perfect substitute of each other.
Answer 6 : Option D is correct. As the demand of the essential good is inelastic.
Answer 7 : Option C is correct. An oligopoly market faced a kinked demand curve.
Answer 9: Total surplus is equal to consumer as well as Producer surplus in the country.
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