practice4 - 1) When economists say a market has...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
A) factors that prevent other firms from challenging a firm with market power. B) economic profits that are positive, but too high to encourage entry. C) a policy that some countries establish to reduce imports from other countries. D) monopolists being prohibited from selling their products to certain customers. 2) For a monopolist, marginal revenue ________ for all units of output except the first unit. A) is less than the price of output B) is greater than the price of output C) may be either greater than or less than the price of output D) is equal to the price of output 3) Suppose that Figure 13.3 shows a monopolist's demand curve, marginal revenue, and its costs. The monopolist would maximize its profit by producing a quantity of: A) 30 units. B) 50 units. C) 60 units. D) There is no sufficient information. 4) Suppose that Figure 13.3 shows a monopolist's demand curve, marginal revenue, and its costs. The monopolist would maximize its profit by charging a price of: A) $35. B) $25. C) $20. D) $16. 5) The term "rent seeking" best describes a situation in which: A) consumers compete for a limited quantity of the good. B) individuals expend effort searching for a good price on an apartment. C) firms use resources to secure or preserve a monopoly in providing a good or service.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 5

practice4 - 1) When economists say a market has...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online