1) For a perfect price discriminator, the MR curve ____. A) is vertical B) is ho

Question

1) For a perfect price discriminator, the MR curve ____.
   A) is vertical
   B) is horizontal
   C) lies above the demand curve
   D) is the same as the demand curve
   E) Lies below the demand curve

2) When a competitive market is monopolized, the result is likely ____.
   A) higher prices
   B) a lower level of output
   C) rent-seeking activity
   D) higher prices and lower level of output and rent-seeking activity

3) In dealing with intellectual property, the marginal revenue of producing another unit of output is equal to the price at which that unit of output will be sold. (TURE/FALSE)

4) For a single-price monopoly, the marginal revenue of producing another unit of output is equal to the price at which that unit of output will be sold (TRUE/FLASE)

5) A (single price) monoploy firm should shut down in the short run whenever P < ATC at the best level of output. (TRUE/FALSE)

6) A monopoly firm is the only seller of a good or service with ____.
   A) no close substitutes
   B) no barries to entry
   C) no close complements
   D) no government involvement
   E) none of these answers

7) A single-price monoploy should shut down when, at the output level where MR = MC
   A) P < AVC
   B) MC > ATC
   C) ATC > MC
   D) P < ATC
   E) ATC < AVC

8) Lobbying government officials to preserve barriers to entry is an example of rent-seeking activity (TRUE/FALSE)

9) Price discrimination always benefits the firm and harms consumers. (TRUE/FALSE)

Explanation / Answer

Answers-

1) B, Horizontal

2) D, High prices, lower level of output and rent seeking activity

3) False

4) True

5) True

6) A, no close substitutes

7) D, P< ATC

8) True

9) True

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.