sq__10 - Sample Quiz #10 Ec 201 Michigan State University...

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Sample Quiz #10 Ec 201 Spring, 2009 Michigan State University L. Martin I. Multiple choice 1. Marginal revenue is less than price for a monopolist who cannot price discriminate because a. of diminishing returns; b. the firm is a price taker; c. in order to sell more the monopolist must lower price on all units;* d. of the prisoner’s dilemma; e. of asymmetric information. 2. When firms produce differentiated products and there is free entry, the market structure is called a. oligopoly; b. monopoly; c. monopsony; d. monopolistic competition;* e. natural monopoly. 3. In long run equilibrium in monopolistically competitive industries price equals a. the minimum of average cost; b. average cost, but not at its minimum;* c. the minimum of marginal cost; d. marginal cost, but not at its minimum; e. marginal revenue. 4. In the long run equilibrium of monopolistically competitive industries, a. price exceeds marginal cost; b. price equals average cost; c. marginal revenue equals marginal cost;
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sq__10 - Sample Quiz #10 Ec 201 Michigan State University...

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