assignment 7 - 1 The theory of monopoly assumes that the...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
1. The theory of monopoly assumes that the monopoly firm Student Response 1. faces a downward-sloping supply curve that is the same as its marginal revenue curve. 2. faces a downward-sloping demand curve. 3. produces more than the perfectly competitive firm under identical demand and cost conditions. 4. produces a product for which there are many close substitutes. 5. none of the above Score: 1/1 2. A natural monopoly exists when Student Response 1. a firm is the exclusive owner of a key resource necessary to produce the firm’s product. 2. economies of scale are so large that only one firm can survive and achieve low unit costs. 3. a monopolist produces a product, the main component of which is a natural resource. 4. there are no close substitutes for a firm's product. Score: 1/1 3. Which of the following is the best example of a monopoly? Student Response 1 . a local power utility 2. a department store 3. a wheat farmer 4. a fast-food restaurant
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Score: 1/1 4. For the monopoly firm that does not engage in perfect price discrimination, Student Response 1 . the marginal revenue curve lies below the demand curve. 2. the marginal revenue curve and demand curve are the same. 3. the marginal revenue curve lies above the demand curve.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern