microchp12 - POP QUIZ WORKSHEET 3: CHAPTER 12 NAME: _...

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POP QUIZ WORKSHEET 3: CHAPTER 12 NAME: __________________________________ COURSE: ________________________________ 1. Regarding MC and MR: a. If MR > MC, the monopolist gains profit by decreasing output. b. If MR < MC, the monopolist gains profit by increasing output. c. If MR = MC, the monopolist is breaking even. d. If MR = MC, the monopolist is maximizing profit. 2. A significant difference between a monopolist and a competitive firm is that: a. a monopoly is a price taker, whereas a competitive firm is a price maker. b. the monopolist faces the market demand curve which is downward sloping, whereas the competitive firm’s demand curve is perfectly inelastic at the market price. c. the monopoly’s marginal revenue curve is downward sloping and lies below its demand curve, whereas the competitive firm’s marginal revenue curve is vertical. d. a monopolist possesses barriers to entry into its market, whereas the competitive firm has no such barriers to entry. 3.
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This note was uploaded on 09/02/2011 for the course ECON 2 taught by Professor Contractor during the Spring '11 term at DeAnza College.

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microchp12 - POP QUIZ WORKSHEET 3: CHAPTER 12 NAME: _...

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