Question

8. Price discrimination can occur If:
a.) producers are price takers
b.) there are many firms in the industry, all producing the same identical good.
c.) the market structure is monopolistic competition.
d.) all consumers have the same willingness to pay for the good.

10. The Go Sports Company is a profit-maximizing firm with a monopoly in the production of school team pennants. The firm sells its pennants for $10 each. We can conclude that Go Sport is producing a level of output at which:
a.) average total cost is greater than $10.
b.) average total cost equals $10.
c.) marginal revenue equals $10.
d.) marginal cost equals marginal revenue.

14. The demand curve for monopoly is:
a.) the entire MR curve.
b.) the MR curve above the AVC curve.
c.) above the MR curve.
d.) the MR curve above the horizontal axis.

15. Price discrimination leads to a __ price for consumers with a ___ demand.
a.) higher; less elastic
b.) higher; perfectly elastic
c.) higher; more elastic
d.) lower; less elastic

Answer 1

Ans8) the correct option is c.) the market structure is monopolistic competition.ans10) the correct option is

ans10) then correct option is d.) marginal cost equals marginal revenue.

Ans14)the correct option is a.) higher; less elastic

ans15) the correct option is a.) higher; less elastic