Question

All of the following industry types have market power except

A) monopolistic competition.
B) perfect competition.
C) monopoly.

D) oligopoly.

CCC Computer Company has a monopoly on the sale of a specialized color printer. If it sells two of these printers its total revenue is $1,000, and if it sells three color printers its total revenue is $1,200. The marginal revenue of the third color printer sold is
A) equal to the price

B) $400
C) less than its price
D) higher than the price

For a monopoly, the marginal revenue curve has one point in common with the firm's linear demand curve, which is ___________
A) y - intercept
B) no point in common

C) x - intercept
D) Indeterminate from the given information

When a monopolist sells two units of output its total revenue is $600. When a monopolist sells three units of output its total revenue is $630. The marginal revenue of the second unit is _____ A) Indeterminate from the given information
B) $230.

C) $310.

D) $630.

When a monopolist sells two units of output its total revenue is $600. When a monopolist sells three units of output its total revenue is $660. In order to sell three units of output instead of only two, the monopolist must
A) increase its price by $30 per unit.

B) decrease its price by $80 per unit.
C) make no change in price and increase output by one unit.

D) decrease its price by $30 per unit.

Answer 1

1. B) Perfect competition: In perfect competition, unlike the other markets, the firm is a price taker. There are a large number of buyers and sellers and a single firm has no market power.

2. The marginal revenue of the third color printer sold is C) less than its price.

3. C) X intercept.

4. C) $310.

5. B) decrease its price by $80 per unit.