The marginal utility curve is downward sloping.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 2The two theoretical extremes of the market structure spectrum are occupied at one end by perfect competition and on the other end by monopoly.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 3A rational consumer will always shift a dollar from a good whose marginal-utility-to-price ratio is lower to one whose marginal-utility-to-price is higher.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 4Compared to a perfectly competitive industry, a monopolist with the same marginal cost and demand curve will charge:
a. a higher price and produce a higher volume of output.
b. a lower price and produce a higher volume of output.
c. a lower price and produce a lower volume of output.
d. a higher price and produce a lower volume of output.
e. the same price and produce the same volume of output.
QUESTION 5Marginal utility is always a positive number.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 6If pizza used to be produced in a perfectly competitive market, and now the pizza market has become a monopoly, we can expect:
a. less pizza to be sold at a higher price.
b. more pizza to be sold at a higher price.
c. less pizza to be sold at a lower price.
d. more pizza to be sold at a lower price.
e. the same amount of pizza to be sold at the same price.
QUESTION 7Marginal utility measures the increase in total utility you derive from consuming one more unit of a good.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 8Compared to a perfectly competitive firm with the same cost structure, a monopoly firm will charge a:
a. higher price and sell more.
b. lower price and sell more.
c. higher price and sell less.
d. lower price and sell less.
e. similar price and sell the same.
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