Question

In: Economics

1, One feature of a monopoly is that the monopolist is: A, a producer of products...

1, One feature of a monopoly is that the monopolist is:

A, a producer of products with many close substitutes

B, a price maker

C, a price taker

D, one of several producers of a product

2, Which of the following is true?

A, For a perfectly competitive seller marginal revenue is always constant, but for a monopolist marginal revenue increases as it sells more output

B, Marginal revenue is always constant for both, a monopolist and a perfectly competitive seller

C, For a monopolist marginal revenue is always constant, but for a perfectly competitive seller marginal revenue decreases as it sells more output

D, For a perfectly competitive seller marginal revenue is always constant, but for a monopolist marginal revenue decreases as it sells more output

3, Monopolists may obtain economic profits in the long run because:

A, of increased competition

B, there are barriers to entry.

C, of rising average fixed costs

D, there are no barriers to entry

Expert Solution

1. C. A price taker.

2 D. For a perfectly competitive seller, marginal revenue is always constant but for a monopolist marginal revenue decreases as it sells more output.

3. B. There are barriers to entry.

Rahul Sunny answered 2 years ago

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