Quiz 3

# Quiz 3 - (a) the mon opol y will provi de 17,0 09 gallo ns...

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Quiz 3 A pure monopoly firm

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(a) will alwa ys earn econ omic profi t, no matt er what the level of dem and for its prod uct. (b) face s a perf ectly elast ic dem and curv e for its prod uct. (c) will alwa ys be able to earn mor e profi t whe n it raise
For any given quantity, marginal revenue for a monopoly firm will be (a) grea ter than price . (b) equ al to price . (c) less than price . (d) equ al to aver age reve nue. The following table shows the demand schedule for a firm that has a monopoly in the sale of gasoline outside Crater Lake National Park. Quantity of Gallons Demanded Price of Gasoline per Year 2.00 11,004 1.75 16,048 1.67 19,994

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1.38 22,400 1.19 24,721 If the marginal cost of gasoline is \$1.19, no matter how much is provided,

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Unformatted text preview: (a) the mon opol y will provi de 17,0 09 gallo ns per year . (b) the mon opol y will provi ded 16,0 48 gallo ns per year . (c) the mon opol y will provi de 24,7 21 gallo ns per year . (d) the mon opol y will Aggregate expenditures are (a) C + G + I - NE. (b) GDP - NE. (c) GDP + I + NE. (d) C + I + G + GDP . (e) C + I + G + NE. The total labor force is (a) equi vale nt to the total pop ulati on. (b) com prise d of all pers ons over the age of 16. (c) equ al to the num ber of une mplo yed pers ons. (d) the sum of all peo ple over the age of 16 who have jobs...
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## This note was uploaded on 03/20/2008 for the course EC 205 taught by Professor Hymen during the Spring '08 term at N.C. State.

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Quiz 3 - (a) the mon opol y will provi de 17,0 09 gallo ns...

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