Quiz_153 - 78 Intheshort-run,,itshould , Answer True 78...

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78) In the short - run, even if a monopoly ʹ s total revenue does not cover its variable costs, it should continue to produce because ultimately in the long run, the monopoly will start earning profits. 78) Answer: True False Diff: 2 Page Ref: 497/497 Topic: Profit Maximization Learning Outcome: Micro 14: Discuss production and pricing decisions within monopolies and how public policies affect monopolies AACSB: Reflective Thinking 79) To maximize profit, a monopolist will produce and sell a quantity such that for the last unit sold, marginal revenue equals marginal cost, and charges a price given by the demand curve at that output level. 79) Answer: True False Diff: 2 Page Ref: 497/497 Topic: Profit Maximization Learning Outcome: Micro 14: Discuss production and pricing decisions within monopolies and how public policies affect monopolies AACSB: Reflective Thinking SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. 80) What is the relationship between marginal revenue and average revenue for a monopolist and is it the same for a perfect competitor? 80) Answer: Average revenue is equal to price for any firm but for a monopolist, marginal revenue is always less than price and therefore marginal revenue is less than average revenue. For a perfect competitor, marginal revenue is equal to price. Diff: 2 Page Ref: 496 - 497/496 - 497 Topic: Comparing Monopoly and Perfect Competition Learning Outcome: Micro 14: Discuss production and pricing decisions within monopolies and how public policies affect monopolies
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Christopher Reinemann
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