For which of the following types of firm does the average revenue curve coincide with the marginal revenue curve?
a. A monopolist
b. An oligopoly firm
c. A monopolistically competitive firm
d. A perfectly competitive firm
e. A monopsonist
QUESTION 2Why does the government allow some markets to be monopolized by granting patents?
a. to promote a more equal distribution of income
b. to correct for negative externalities
c. to promote technological progress
d. to ensure lower prices for consumers in the short run
QUESTION 3_____ gives the slope of an isocost line where labor (L) and capital (K) are the two inputs measured on the X and Y axes respectively.
a. The ratio of the marginal product of capital to the marginal product of labor, with a negative sign,
b. The ratio of price of labor to the price of capital, with a negative sign,
c. The ratio of the price of capital to the price of labor
d. The ratio of the marginal product of labor to the marginal product of capital
QUESTION 4If the export supply curve and the import demand curve of tomatoes of Luxembourg intersect at the international price level of tomatoes, then Luxembourg will suspend trading tomatoes in the international market.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 5Which of the following faces a horizontal demand curve?
a. A monopolistic firm
b. An oligopolistic firm
c. A perfectly competitive firm
d. A monopolistically competitive firm
e. A monopsonist firm
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