Solved by Expert Tutors
1. In order to increase sales from 7 units to 8 units, a single-price monopoly must drop the price from 7 TL to 6 TL per unit. What is marginal
Solved by Expert Tutors
Question

1. In order to increase sales from 7 units to 8 units, a single-price

monopoly must drop the price from 7 TL to 6 TL per unit. What is marginal revenue in this range?
a) 6 TL
b) 1 TL
c) -1 TL
d) none of the above


2. If a profit-maximizing monopoly is producing at an output at which marginal cost exceeds marginal revenue, it
a) should raise price and lower output
b) should lower price and raise output
c) should lower price and lower output
d) is making losses


3. If the monopolist maximizes profits when marginal revenue equals marginal cost equals average total costs, economic profits must be
a) Negative
b) Positive
c) Zero
d) Cannot tell from the information given


4. Which of the following is a natural barrier to the entry of new firms in an industry?
a) licensing of professions
b) economies of scale
c) issuing a patent
d) a public franchise


5. Economic profits in the long run are
a) Possible for both pure monopoly and pure competition
b) Possible for a pure monopoly, but not for a pure competitor
c) Impossible for both pure monopoly and pure competition
d) Only possible when barriers to entry are nonexistent


6. Due to the network externalities in the game console market, we would expect this market to
a) overproduce game consoles.
b) be highly concentrated.
c) be efficient.
d) be serviced by a natural monopoly.


7. Why do price discriminating firms often offer lower prices to children and elderly?
a) They have a lower willingness to pay than other consumers.
b) Their demand for goods and services tends to be less elastic than other consumers.
c) Such a strategy lowers the costs of the firm.
d) These firms are more interested in equity than profit maximizing.




NO NEED FOR EXPLANATIONS JUST NEED ANSWERS THANK YOU

Step-by-step answer

The student who asked this found it Helpful

or nec

onec aliquet. Lorem ipsum dolor sit

itur laoree

ec aliquet. Lorem ip

congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lore

or nec facilisis. Pellente

ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit a

acinia pulvi

risus

s a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictu

onec aliquet. Lorem ipsum dolor sit

usce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor n

itur laoree

, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolo

ec aliquet. Lorem ip

at, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapi

congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lore

m ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. F

or nec facilisis. Pellente

usce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam la

ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit a

risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac mag

Subscribe to view the full answer

Subject: Business, Economics

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Let our 24/7 Economics tutors help you get unstuck! Ask your first question.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes