Answer to Question #49257 in Microeconomics for Austin

Question

Like a perfectly competitive firm, if a monopolist wants to know how much it will save by reducing output, it will evaluate its:
marginal product function
average product function
marginal cost function
average variable cost function
average total cost function

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Question 11 2.5 pts Under uniform pricing, a profit maximizing monopolist’s price is:
Under uniform pricing, a profit maximizing monopolist’s price is:
the same as the price that would prevail if the industry were perfectly competitive
less than the price that would prevail if the industry were perfectly competitive
greater than the price that would prevail if the industry were perfectly competitive
none of the above

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Question 12 2.5 pts Skip to question text.
Suppose that a monopolist finds itself to be operating at a break-even point. It follows that its:
i. total revenue is equal to total variable cost
ii. total revenue is equal to total cost
iii. average revenue is equal to average variable cost
iv. average revenue is equal to average total cost
i
ii
iii
i and iii
ii and iv

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Question 13 2.5 pts Similar to a perfectly competitive firm, a monopolist that is confronted with fixed costs in the short run should produce versus shut down if the total revenue that it can generate is sufficient to cover its:
Similar to a perfectly competitive firm, a monopolist that is confronted with fixed costs in the short run should produce versus shut down if the total revenue that it can generate is sufficient to cover its:
total fixed costs
marginal costs
total variable costs
total costs

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Question 14 2.5 pts Skip to question text.
Suppose a firm has monopoly power in the production of a particular good. If it finds that revenue and cost conditions are such that at all levels of output the price it can charge in order to sell all of the units is less than the average variable costs then it is in the firm’s best interest to:
close down because its operating losses will exceed its shut-down losses at all levels of output
maximize profits by producing where MR = MC
close down because its total operating cost will exceed its total revenue
minimize losses by producing where MR = MC