6 Questions |
By Mindstein | Last updated: May 8, 2019
| Total Attempts: 1201
In the market, there are a lot of products and services being offered to meet the desires of a consumer but the resources needed to meet these wants are always scarce and it is up to the producer to come up with a solution on how to maximize his/her outcomes using them. This quiz will check your understanding of Principles of Microeconomics.
Questions and Answers
Monopolistic competition means:
Many firms producing differentiated products.
A situation where competition is based entirely on product differentiation.
A large number of firms producing a standardized or homogeneous product.
A few firms producing a standardized or homogeneous product
Refer to the above data. The value for Y is:
If the demand for bacon is relatively elastic, a 10 percent decline in the price of bacon will:
Increasethe amount demanded by more than 10 percent.
Decrease the amount demanded by more than 10 percent.
Decrease the amount demanded by less than 10 percent.
Increase the amount demanded by less than 10 percent.
Suppose a pure monopolist is charging a price of $12 and the associated marginal revenue is $9. We thus know that:
Demand is inelastic at this price
The firm is maximizing profits
Total revenue is at a maximum
Total revenue is increasing
The above diagram indicates that the marginal revenue of the sixth unit of output is:
The MR = MC rule:
Applies only to pure competition.
Applies only to pure monopoly.
Does not apply to pure monopoly because price exceeds marginal revenue.
Applies both to pure monopoly and pure competition
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If the demand curve for good X is downward-sloping, an increase in the price will result in