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Econ 333 Fall -2007 Quiz 3

Econ 333 Fall -2007 Quiz 3 - differentiated products 9 In a...

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Econ333: Managerial Economics: Quiz #3 Phil Trevezas 1. “Price” regulations benefits: the consumer 2. In the long run, perfectly competitive firms are expected to: break even. 3. A monopolist will maximize profits by producing a quantity of output at which: MC = MR. 4. A lump sum tax imposed by government benefits the: government 5. Monopolists have limited power to set the price of their product. 6. If the demand curve is perfectly elastic and the supply curve is upward slopping then a per unit tax imposed by the government is going to be paid by the: supplier. 7. The demand curve expected by a pure monopolist is: the same as the market demand curve. 8. Perfectly competitive industries are characterized by all except:
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Unformatted text preview: differentiated products. 9. In a perfectly competitive industry for each firm: price equals marginal revenue. 10. In a perfectly competitive industry a firm faces a demand curve that is: a. vertical. b. very steep c. upward sloping. d. none of the above. Short Answer: a.) Discuss, briefly, the short and long run equilibrium of a perfectly competitive firm. b.) Show, graphically, a short run profit maximizing perfect competitor who breaks even. True or False and Explain Answer: a.) In the short run, a profit maximizing firm will shut down if TF < T Loss. b.) In the long run a profit maximizing monopolist earns zero economic profits. c.) A monopolist can charge a price as high as he wants....
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