A monopolist who is unable to price discriminate:
a. will never produce in the output range where marginal revenue is positive.
b. will never produce in the output range where marginal revenue is negative.
c. will never produce in the output range where demand is inelastic.
d. will be characterized by both (b) and (c).
QUESTION 2Justin never keeps track of the sales and discounts offered in the stores at various times of the year, while his sister does. This implies that Justin has a higher price elasticity of demand than his sister.
Indicate whether the statement is true or false
QUESTION 3Every country imposes tariffs on at least some imports.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 4Barriers to entry do not occur when:
a. economies of scale in production exist in an industry.
b. firms requires a professional license or franchise agreement.
c. the firm that introduces a product is granted a patent.
d. a firm controls a scarce resource.
e. diseconomies of scale in production exist in an industry.
QUESTION 5In a perfectly competitive industry, the industry demand curve is ____, while in a monopolistic industry, the industry demand curve is:
a. horizontal; downward sloping.
b. downward sloping; horizontal.
c. downward sloping; downward sloping.
d. horizontal; horizontal.
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