Monopolistic and Oligopoly Quiz PDF

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"Unit 9" Quiz from Robert Stanford...

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Given a downward-sloping linear demand curve, if total revenue decreases as quantity of output increases, marginal revenue must be _____. Negative and demand is inelastic A pure monopoly can sell 20 toys per day for $8 each. To sell 21 toys per day, the price must be cut to $7. The marginal revenue of the 21st toy is $-13

20*8= 160

21*7=147

160-147=13 (13 loss)

A nondiscriminating pure monopoly is generally viewed as being _____. neither productively nor allocatively efficient One defining characteristic of pure monopoly is that the _____. monopoly produces a product with no close substitutes Which characteristic would best be associated with perfect competition? price takers If a firm is a price taker, then the demand curve for the firm's product is perfectly elastic. Which is a feature of a perfectly competitive market? products are standardized or homogeneous In perfect competition, the demand faced by a single firm is perfectly elastic, because many other firms produce the same standardized product. Barriers to entering an industry _____. are characteristic of a pure monopoly The long-run perfectly competitive equilibrium results in normal profits....