Q1. A monopolist will expand production until: A) MR = MC and the price of the product will be determined by the MR curve. B) P = MC and the price of the product will be determined by the MC curve. C) MR = MC and the price of the product will be determined by the demand curve.
Q2. If a profit maximizing firm finds that its marginal revenue exceeds its marginal cost, it should increase output: A) if it is a price taker, but not if it is a price searcher. B) if it is a price searcher, but not if it is a price taker. C) regardless of whether it is a price taker or a price searcher.
Q3. Which of the following statements about a monopolist is least accurate? A) A monopolist will always be able to earn economic profit. B) A profit-maximizing monopolist will expand output until marginal revenue equals marginal cost. C) A profit-maximizing monopolist will supply less of his product than the amount consistent with the conditions of ideal static efficiency for an economy.
Q4. At an output quantity equal to 250, a monopoly firm faces a demand curve with a price (P) of $50, a marginal cost (MC) and marginal revenue (MR) equal to $10, and an average total cost (ATC) equal to $12. The economic profit for this monopoly firm is closest to: A) $12,500. B) $10,000. C) $9,500.
Q5. Monopolists will maximize profit by producing at an output level where which of the following conditions exists? A) Marginal revenue = marginal cost < price. B) Price = marginal revenue = marginal cost. C) Price = demand = marginal revenue = marginal cost.
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发表于 2009-1-6 13:58
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