ECO3041 - Ch 7 Review Qs

ECO3041 - Ch 7 Review Qs - Chapter 7 Review Questions...

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Questions: 1. Pure monopoly means: A) any market in which the demand curve to the firm is down sloping. B) a standardized product being produced by many firms. C) a single firm producing a product for which there are no close substitutes. D) a large number of firms producing a differentiated product. 2. A natural monopoly occurs when: A) long-run average costs decline continuously through the range of demand. B) a firm owns or controls some resource essential to production. C) long-run average costs rise continuously as output is increased. D) economies of scale are obtained at relatively low levels of output. 3. Which of the above diagrams correctly portray a non-discriminating pure monopolist's demand ( D ) and marginal revenue (MR) curves? A) A B) B C) C D) D 4. In the long run a pure monopolist will maximize profits by producing that output at which marginal cost is equal to: A) average total cost. B) marginal revenue.
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This note was uploaded on 01/22/2012 for the course ECO 3041 taught by Professor Dacal during the Fall '11 term at FIU.

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ECO3041 - Ch 7 Review Qs - Chapter 7 Review Questions...

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