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quiz 8 - 1 If there is only one supplier in an industry...

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1. If there is only one supplier in an industry, then the firm is the industry. 2. In Figure 8.2, the profit maximizing output is 285 units. 3. In Figure 8.3 above, the maximum profit price is at $ 300 4. Monopolies tend to compensate workers at a higher rate than purely competitive firms compensate workers. 5. horizontal mergers are direct competitors merging into one company. 6. There are few firms’ products or services that have no substitutes. 7. In Figure 8.2, since the MR and D are different lines, the intercept of MR and MC is no longer on the demand line. 8. An example of a(n) operating inefficiency is allowing less-efficient workers to be employed and/or paid more than a market rate. 9. vertical mergers are different production levels combining into one company (e.g., a peanut butter company buying a peanut farm). 10. In Figure 8.3 above, the maximum profit output is at Quantity of 8.0 . 11. In Figure 8.2 , MR is less than price at every point except the initial point. 12. A(n) operating inefficiency in a monopoly is when the firm uses a means of production that does not produce the least costly output. 13. In Figure 8.3 above at the profit maximizing output, the total revenue is $ 2400 14. pure monopoly is defined in microeconomics as one producer with no convenient substitutes who is a price maker. 15. An example(s) of Pure Monopoly is both b( water supplied by local utility (toilet flushing, dish washing, etc. as well as drinking) . and c( patented drug with no reasonable substitute).
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