Biology Forums - Study Force

A monopolist charges 7 per unit for selling 6 units of his product. To sell 7 units, he reduces price to 6.5 per unit. The marginal revenue (net addition to revenue) from selling the seventh unit is then 3.5.
  Indicate whether the statement is true or false

QUESTION 2

In long-run equilibrium in perfect competition, the entry and exit of firms will drive economic profits to zero.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 3

For any monopolist with a positive marginal cost of production, its demand curve at its profit maximizing level:
 a. would be elastic.
 b. would be unit elastic.
 c. would be inelastic.
 d. could be either elastic or inelastic.

QUESTION 4

Creating conditions for fair trade by limiting imports will make the domestic consumers better off as they will be required to pay low prices for the products.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 5

A monopolist faces a horizontal demand curve while a perfect competitor faces a downward sloping demand curve for their respective products.
  Indicate whether the statement is true or false

QUESTION 6

In the long-run, a perfectly competitive firm will leave the market if it is unable to cover all of its fixed costs.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 7

Show Stoppers is a monopoly provider of ticket services for the concerts and sporting events and their current service charge is 10.00 . In order to attract one more customer, they have to lower their service charge to 9.50 . Show Stoppers' marginal revenue of this additional customer is:
 a. 9.50.
 b. greater than 9.50.
 c. less than 9.50.
 d. between 10.00 and 9.50.

[Answer to ques. #1]  T

[Answer to ques. #2]  TRUE

[Answer to ques. #3]  a

[Answer to ques. #4]  FALSE

[Answer to ques. #5]  F

[Answer to ques. #6]  FALSE

[Answer to ques. #7]  c

8-) Feeling super confident now, TY