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Oligopolistic inductries are characterized by |
a few dominant firms and substantial entry bariers |
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If a nondiscriminating imperfectly competeive firm is selling its 100th unit of output of $35 its Marginal Revenue . . |
will be less than $35 |
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Monopolistic competeivion means |
many firms producing differentiating products |
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In which of the folloowing cases would economic profit be the greatest |
an unregulated monopolist which is able to engage in price discrimination |
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X- ineffiency refers to a situation in which a firm |
fails to achieve the minimum atc attainable at each level of output |
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A perfectly discriminating pure monopolist will charge each buyer |
the maximum price each would be willing to pay |
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A pure monopolist is selling 6 units at a price of $12. If the marginal revenue of the 7th unit is $5 then |
the price of the 7th unit is $11 |
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A monopolistic firm it can sell 10 garages per week @ 10,000 each. it restricts its output to 9/week it can sell @ 11,000/each. MR 10th? |
10,000 |
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which of the following is not a precondition for price discrimination |
the commodity involved must be a durable good |
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Other things equal, a perfectly discriminating moonopolist will |
produce a larger output than a nondiscriminating monopolist |
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If a regulatory commission sets price to acheieve the most efficient allocation of resources it will have to |
subsidize the monopolist of the monopolist will go bankrupt in the long run |
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A nondiscriminating monopolist finds that it can sell its 50th unit of output for $50. We can sumrise that the marginal |
revenue of the 50th unit is less than $50 |
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A nondiscriminating pure monopolist's demand curve . . . . . . . . . . . . |
lies above its marginal revenue curve |
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Price discrimination refers to |
the selling of a given product at different prices which do not reflect cost differences |
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If a monopolist engages in perfect price discrimination it will |
charge a higher price where individual demand is elastic and a lower price where individual demand is elastic |
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For a pure monopolist marginal revenue is less than price b/c |
when a monopolist lowers price to sell more output, the lower price applies to all units sold |
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Pure monopolist charging a price of $12 where MR is $9 we know that |
total revenue is increasing |
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If $4 is Firm B's profit mas price then |
MC must be zero |
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a competitive firm is a ________ while a monopolist is a __________ |
price taker, price maker |
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monopolistic competition entry to the industries are |
more difficult than under pure comp but not nearly as difficult as under pure mono. |
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The MR=MC rule is |
applies to both pure mono and pure comp |
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b/c the monopolists demand curve is downsloping |
price must be lowered to sell more output |
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Which Case would economic profit be greatest |
an unregulated mono which is able to engage in price discrimination |
