11)As the only supplier in the market a monopolist can charge any price it wishe

Question

11)As the only supplier in the market a monopolist can charge any price it wishes and buyers have no choice but to pay. A) True B) False 12. 12)The marginal revenue is the additional revenue generated by the last unit of labor hired. A) True B) False 13)The price a monopolist charges may or may not be above its average cost but it is always above its MR. A) True B) False 14. When demand curve is a downward-sloping straight line (linear) marginal revenue will be greater than MC at all output leveles. A) True B) False 15.By setting its MR equal to its MC a monopolist determines the output that would maximize its profit. A) True B) False 16.In the long run each competitive firm would produce at the quantity level where its MC is equal to its MR as well as its ATC. A) True B) False 17.A monopoly always makes an economic profit. A) True B) False 18.When a monopoly's ATC is equal to the price it charges it is making normal economic profits. A) True B) False 19.When a monopoly is making a zero economic profit still its MR>ATC. A) True B) False 20.An increase in demand would enable a monopolist to raise its price while reducing its output. A) True B) False

Explanation / Answer

11) true........... 12 ) False .......... 13) True........... 14) True........ 15 ) True

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