The demand curve facing a monopolist:
a. is the same as its marginal revenue curve.
b. is perfectly elastic.
c. is perfectly inelastic.
d. is less elastic than a perfectly competitive firm's demand curve.
QUESTION 2Tariff accounts for 32 of the total government revenue in the U.K. and only 1.2 in India.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 3A monopolist always decides on how much to produce by equating marginal revenue to zero.
Indicate whether the statement is true or false
QUESTION 4At long-run equilibrium of a perfectly competitive firm the following condition holds good: Long Run Average-Total-Cost = Long Run Marginal Cost = Average Revenue = Marginal Revenue = Price.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 5A monopolist can sell 6 units per day at 8 per unit, or 7 units per day at 7 per unit. Its marginal revenue for the seventh unit of output is:
a. 49.
b. 7.
c. 1.
d. -1.
QUESTION 6Tariffs are considered to be a popular tax in the first world countries who justify them on the basis of the revenue they generate for government spending.
a. True
b. False
Indicate whether the statement is true or false
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