Answer to Question #49283 in Microeconomics for Bradly

Question

1) Assuming that the market demand curve does not shift (i.e., there are no changes in the determinants of demand), the monopolist that practices uniform pricing:



can increase price and increase output simultaneously because it dominates the market


increases its total revenues as it increases output by an amount equal to the price it charges


should produce in the range of demand where marginal revenue is negative


must lower price if it wants to sell more units of output versus fewer units of output

2) For a purely competitive firm _______________; and for a uniform-price monopolist _______________ :



P = AR > MR; P > MR = AR


P = MR = AR; P = AR > MR


P = MR = AR; P = MR > AR


P > MR = AR; P = AR > MR

3) If a monopolist’s total output increases as the quantity of labor that it employs increases, then the:



marginal product of labor could be increasing or decreasing


average product of labor is also increasing


marginal product of labor is also increasing


marginal product of labor is decreasing

Answer 1

1) Assuming that the market demand curve does not shift (i.e., there are no changes in the determinants of demand), the monopolist that
practices uniform pricing:
d) must lower price if it wants to sell more units of output versus fewer units of output
2) For a purely competitive firm _______________; and for a uniform-price monopolist _______________ :
b) P = MR = AR; P = AR > MR
3) If a monopolist’s total output increases as the quantity of labor that it employs increases, then the:
a) marginal product of labor could be increasing or decreasing