Chap15 - ECON1001 Principles of Economics Homework Chapter...

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ECON1001 Principles of Economics Homework: Chapter 15 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. Monopolies use their market leverage to a. charge prices that equal minimum average total cost. b. attain normal profits in the long run. c. restrict output and increase price. d. dump excess supplies of their product on the market. ____ 2. Sizable economic profits can persist over time under monopoly if the monopolist a. produces that output where average total cost is at a maximum. b. is protected by barriers to entry. c. operates as a price taker rather than a price maker. d. realizes revenues that exceed variable costs. ____ 3. Most markets are not monopolies in the real world because a. firms usually face downward-sloping demand curves. b. supply curves slope upward. c. price is usually set equal to marginal cost by firms. d. there are reasonable substitutes for most goods. ____ 4. If a monopolist can sell 7 units when the price is $3 and 8 units when the price is $2, then marginal revenue of selling the eighth unit is equal to a. $2. b.
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This note was uploaded on 10/06/2010 for the course ECON 100a taught by Professor Famurari during the Spring '10 term at Aberystwyth University.

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Chap15 - ECON1001 Principles of Economics Homework Chapter...

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