If a monopolist could sell 5 units at 6 and 6 units at 5:

If a monopolist could sell 5 units at 6 and 6 units at 5:
 a. marginal revenue for the 6th unit is 5.
 b. marginal revenue for the 6th unit is zero.
 c. demand is unit elastic over that range of prices.
  d. both (b) and (c) are true.

QUESTION 2

Protection is rarely withdrawn from infant industries because such firms are necessary to ensure creation of domestic jobs.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 3

Historical evidence suggests that monopolization of particular industries had led to lower prices. In such cases the monopolists had reduced profit to increase welfare.
  Indicate whether the statement is true or false

QUESTION 4

Economic efficiency is achieved when the price of a unit of a commodity is equal to the marginal cost of producing that unit.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 5

If the demand curve facing a monopoly was 1 unit at 7, 2 units at 6, 3 units at 5, 4 units at 4, and 5 units at 3, at the point along the curve where 3 units are being sold, the elasticity of demand:
 a. is greater than one.
 b. is equal to one.
 c. is less than one.
 d. cannot be determined from the above information.

QUESTION 6

The United States has no comparative advantage in shipping, so a domestic shipping industry has no reason to exist.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 7

Monopoly output is relatively lower than a competitive market output as resources remain unutilized under the former.
  Indicate whether the statement is true or false