C7questions

C7questions - Experiment 7 True-False Questions 1. If...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Experiment 7 True-False Questions 1. If demand is inelastic, marginal revenue exceeds average revenue. (Hint: Average revenue is total revenue divided by quantity). Answer: False 2. If the marginal revenue from selling one more unit is greater than the marginal cost of producing that unit, then a monopolist can increase its profits by increasing its output. Answer: True 3. A monopolist practicing perfect price discrimination sells fewer units than a monopolist that charges a single price. Answer: False
Background image of page 1

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

View Full DocumentRight Arrow Icon
Multiple Choice 4. A monopolist faces a demand function that can be described by the equation P=505-15Q where P is the price that the monopolist charges per unit of output and Q is the number of units that the monopolist can sell at that price. The monopolist's total costs are 25Q and its marginal cost is 25. The following expression expresses the monopolist's profit as a function of the number of units sold: (a) 505-15Q-25 (b) 505-30Q (c) 480Q-15Q^2 (d) 505Q-15Q^2-15 (e) None of the above
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 6

C7questions - Experiment 7 True-False Questions 1. If...

This preview shows document pages 1 - 3. Sign up to view the full document.

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