1....monopolisitic competive firm maximizes profit in the short run by A) pricin
ID: 1238575 • Letter: 1
Question
1....monopolisitic competive firm maximizes profit in the short run byA) pricing where price and marginal cost are equal
B) cutting costs to increase economic profit
C) all options are correct
D) pricing where marginal revenue and marginal cost are equal
2... the price of an oligopoly product is likely to be
A) lower than a monoply firm but higher than a monopolisitic competive firm
B) higher than a monoply firm but lower than a monopolisitic competive firm
C) higher than a monoply firm but lower than a perfectly competive firm
D) higher than a monoply firm but higher than a perfectly competive firm
3... oligopoly and monoply markets generally arise from
A) economies of scale
B) ownership of a key resource
C)barriers to entry
D) all options are correct
Explanation / Answer
1----B; because they maximize profit by pricing where marginal revenue and marginal cost are equal in a LONG RUN 2-----A; because as there is no competetion in the monopolistic market, they company wants to maximize the profit by pricing the product at higher prices..so in oligopoly, price is less than a monolopy.. 3---B The important material to produce a product is the raw material..If have all the facilities and capital u need but if u don't have raw materials, they cannot produce products...
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