AP Micro Review Flashcards Table View


Oligopolistic inductries are characterized by a few dominant firms and substantial entry bariers
If a nondiscriminating imperfectly competeive firm is selling its 100th unit of output of $35 its Marginal Revenue . . will be less than $35
Monopolistic competeivion means many firms producing differentiating products
In which of the folloowing cases would economic profit be the greatest an unregulated monopolist which is able to engage in price discrimination
X- ineffiency refers to a situation in which a firm fails to achieve the minimum atc attainable at each level of output
A perfectly discriminating pure monopolist will charge each buyer the maximum price each would be willing to pay
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
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
which of the following is not a precondition for price discrimination the commodity involved must be a durable good
Other things equal, a perfectly discriminating moonopolist will produce a larger output than a nondiscriminating monopolist
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
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
A nondiscriminating pure monopolist's demand curve . . . . . . . . . . . . lies above its marginal revenue curve
Price discrimination refers to the selling of a given product at different prices which do not reflect cost differences
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
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
Pure monopolist charging a price of $12 where MR is $9 we know that total revenue is increasing
If $4 is Firm B's profit mas price then MC must be zero
a competitive firm is a ________ while a monopolist is a __________ price taker, price maker
monopolistic competition entry to the industries are more difficult than under pure comp but not nearly as difficult as under pure mono.
The MR=MC rule is applies to both pure mono and pure comp
b/c the monopolists demand curve is downsloping price must be lowered to sell more output
Which Case would economic profit be greatest an unregulated mono which is able to engage in price discrimination