Podcast
Questions and Answers
Which market structure is characterized by a single firm representing the market and facing significant barriers to entry?
Which market structure is characterized by a single firm representing the market and facing significant barriers to entry?
- Monopolistic competition
- Perfect competition
- Oligopoly
- Monopoly (correct)
Which of the following is a distinguishing characteristic of a monopoly market?
Which of the following is a distinguishing characteristic of a monopoly market?
- The firm has no pricing power
- The demand curve is perfectly elastic
- There are no barriers to entry
- The product offered has no close substitute (correct)
What is the condition for a perfectly competitive firm to maximize its return?
What is the condition for a perfectly competitive firm to maximize its return?
- MR = MC (correct)
- MR = AR
- MR < MC
- MR > MC
What is a possible source of market power for a monopoly?
What is a possible source of market power for a monopoly?
What is one example of a near-monopoly dominant firm?
What is one example of a near-monopoly dominant firm?
What is the most common form of monopolistic market power?
What is the most common form of monopolistic market power?
What is the condition for a perfectly competitive firm to maximize its return?
What is the condition for a perfectly competitive firm to maximize its return?
Which of the following is a potential source of market power for monopolies?
Which of the following is a potential source of market power for monopolies?
What is the demand relationship in a monopoly market?
What is the demand relationship in a monopoly market?
What is the marginal revenue curve in a monopoly market if the demand schedule is linear?
What is the marginal revenue curve in a monopoly market if the demand schedule is linear?
What is the total revenue equation in a monopoly market?
What is the total revenue equation in a monopoly market?
What is the profit-maximizing level of output in a monopoly market?
What is the profit-maximizing level of output in a monopoly market?
What is the marginal cost equation in a monopoly market?
What is the marginal cost equation in a monopoly market?
What determines the profit-maximizing level of output in a monopoly market?
What determines the profit-maximizing level of output in a monopoly market?
According to the text, what happens to the industry supply curve in the long run when there is an increase in economic profit?
According to the text, what happens to the industry supply curve in the long run when there is an increase in economic profit?
In the long run, where does the perfectly competitive firm operate in terms of marginal cost and average cost?
In the long run, where does the perfectly competitive firm operate in terms of marginal cost and average cost?
What does it mean for a perfectly competitive firm to earn zero economic profit in the long run?
What does it mean for a perfectly competitive firm to earn zero economic profit in the long run?
What is the relationship between total revenue and price in the long-run equilibrium of a perfectly competitive firm?
What is the relationship between total revenue and price in the long-run equilibrium of a perfectly competitive firm?
What is the long-run marginal cost schedule of a perfectly competitive firm?
What is the long-run marginal cost schedule of a perfectly competitive firm?
What is the basic rule of profit maximization for a perfectly competitive firm in long-run equilibrium?
What is the basic rule of profit maximization for a perfectly competitive firm in long-run equilibrium?
What is the relationship between the perfectly competitive firm's demand schedule and its marginal revenue and average revenue?
What is the relationship between the perfectly competitive firm's demand schedule and its marginal revenue and average revenue?
Which of the following methods can be used to solve the profit function in a monopoly market?
Which of the following methods can be used to solve the profit function in a monopoly market?
In a monopoly market, the profit-maximizing quantity of output occurs when Q* is equal to how many units?
In a monopoly market, the profit-maximizing quantity of output occurs when Q* is equal to how many units?
What is the price per unit in a monopoly market when Q* = 75 units of output?
What is the price per unit in a monopoly market when Q* = 75 units of output?
What is the total maximum profit in a monopoly market when Q* = 75 units of output?
What is the total maximum profit in a monopoly market when Q* = 75 units of output?
In a monopoly market, where does the price and output combination that maximizes profit occur on the demand curve?
In a monopoly market, where does the price and output combination that maximizes profit occur on the demand curve?
What is the relationship between marginal revenue (MR) and price elasticity (EP) in a monopoly market?
What is the relationship between marginal revenue (MR) and price elasticity (EP) in a monopoly market?
If a monopoly firm knows that its marginal cost is constant at 75 and the price elasticity of demand is 1.5, what is the optimal price?
If a monopoly firm knows that its marginal cost is constant at 75 and the price elasticity of demand is 1.5, what is the optimal price?
In a regulated monopoly, what is the output level and price set by the government regulator?
In a regulated monopoly, what is the output level and price set by the government regulator?
Why is the competitive solution unfair for a regulated monopoly?
Why is the competitive solution unfair for a regulated monopoly?
