Question #49284

1) 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

2) 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

3) A profit-maximizing monopolist that sells all units of its output for a single (uniform) price will set this price:

as far above average total cost (ATC) as possible

along the elastic portion of its demand curve

along the inelastic portion of its demand curve

at the minimum of it average total cost (ATC) curve

where the marginal cost (MC) curve intersects the demand curve

marginal product function

average product function

marginal cost function

average variable cost function

average total cost function

2) 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

3) A profit-maximizing monopolist that sells all units of its output for a single (uniform) price will set this price:

as far above average total cost (ATC) as possible

along the elastic portion of its demand curve

along the inelastic portion of its demand curve

at the minimum of it average total cost (ATC) curve

where the marginal cost (MC) curve intersects the demand curve

Expert's answer

1) Like a perfectly competitive firm, if a monopolist wants to know how much it will save by reducing output, it will evaluate its:

c) marginal cost function

2) 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

e) ii and iv

3) A profit-maximizing monopolist that sells all units of its output for a single (uniform) price will set this price:

a) as far above average total cost (ATC) as possible

c) marginal cost function

2) 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

e) ii and iv

3) A profit-maximizing monopolist that sells all units of its output for a single (uniform) price will set this price:

a) as far above average total cost (ATC) as possible

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