quiz 8 - C the monopoly has a strong influence over the...

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T HE O HIO S TATE U NIVERSITY D EPARTMENT OF E CONOMICS E CON 200N, W INTER 2008 I NSTRUCTOR : Y U Z HOU Q UIZ E IGHT F EB 28, 2008 P RINT Y OUR N AME __________________ KEY ____________________________ S OCIAL S ECURITY N UMBER (O PTIONAL ) ________________________________ S IGN Y OUR N AME __________________________________________________ I NSTRUCTIONS : Y OU HAVE 12 MINUTES TO COMPLETE THE QUIZ . T HE QUIZ TOTALS 2 POINTS . Y OU HAVE 4 MULTI - CHOICE QUESTIONS AND EACH QUESTION ACCOUNTS ONE HALF POINT . P LEASE FILL IN YOUR ANSWERS INSIDE THE TABLE AT THE BOTTOM OF THIS PAGE , AND TURN IN THIS PAGE ONLY . Y OU KEEP THE QUIZ PROBLEMS . P ICK THE BEST ANSWER FOR EACH QUESTION . Problem 1 Problem 2 Problem 3 Problem 4 C D B A 1, In the short run a perfectly competitive firm will 1
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A), never shut down. B), shut down if P < ATC. C), shut down if P < AVC. D), shut down if P > AFC. 2, The following are key features of a monopoly EXCEPT A), the monopoly is protected by a barrier to entry. B), no close substitutes exist for the good or service.
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Unformatted text preview: C), the monopoly has a strong influence over the price of the good or service. D), the monopoly has severe diseconomies of scale. 3, In the figure below, in the perfectly competitive market, the firm's supply curve is the curved line linking A), point a to point c and stopping at point c. B), point b to point d and continuing on past point d along the MC curve. C), point b to point f and stopping at point f. D), point c to point e and continuing on past point e along the ATC curve. 2 4, For the single-price monopoly shown in the figure below, when its profit is maximized, output will be A), 4 units per year and the price will be $6. B), 4 units per year and the price will be $4. C), 6 units per year and the price will be $4. D), None of the above answers is correct. THE END 3...
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quiz 8 - C the monopoly has a strong influence over the...

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