Question

34. Which of the following describes a monopoly?

Group of answer choices

any market in which the demand curve to the firm is downsloping.

a standardized product being produced by many firms.

a single firm producing a product for which there are no close substitutes.

a large number of firms producing a differentiated product.

35. Which of the following is true for the marginal revenue curve of a monopolist?

Group of answer choices

is a straight, upsloping curve.

rises at first, reaches a maximum, and then declines.

becomes negative when output increases beyond some particular level.

is a straight line, parallel to the horizontal axis.

37. Which of the following is true for a monopoly?

Group of answer choices

Its marginal revenue is always equal to the price.

Its supply curve is positively sloping.

It produces a product for which there are close substitutes.

Even though it is a price-maker (has much control over the price it charges), it can make losses at its optimal output.

39. A pure monopolist is producing an output such that ATC = $10, P = $12, MC = $5, and MR = $5. This firm is realizing:

Group of answer choices

an economic profit that could be increased by producing more.

an economic profit that could be increased by producing less.

its maximum economic profit.

an economic loss.

40. The demand function of a monopoly is such that it can sell 3 units per week at $8 each, but 4 units per week at $7 each. The marginal revenue of the 4th unit per week is:

Group of answer choices

$8

$7

$6.

$4.

Answer 1

Answer))

34) a single firm producing a product for which there are no close substitutes.This statement best describe the monopoly. Monopoly has a single seller selling a good which has no close substitute and is often patented. Other options are incorrect.

35) The marginal revenue curve of the monopolist becomes negative when output rises beyond some particular level. After a particular price, consumer stop purchasing product at such a high price.Other options are incorrect.

37) Even though it is a price-maker (has much control over the price it charges), it can make losses at its optimal output.This is the statement that best fits the monopoly. Other options are incorrect.

39) A pure monopolist is producing an output such that ATC = $10, P = $12, MC = $5, and MR = $5. This firm is realizing:It's maximum economic profit since MR = MC. Other options are incorrect.

40) The demand function of a monopoly is such that it can sell 3 units per week at $8 each, but 4 units per week at $7 each. The marginal revenue of the 4th unit per week is: $7.

Since the 4th unit is sold at an additional revenue of $7.

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