Quiz 3

A  $920

B  none of these

C  $720

D  $820

E  $1,020

A  5

B  3

C  7

D  4

E  6

A  There are no close substitutes to the good being produced by the monopolist.

B  None of these

C  There are many firms in the market. Firms are price takers.

D  There exists a significant barrier to entry for firms looking to enter the market.

A  Firms will leave the market, causing price to fall, reducing profits for existing firms.

B  Firms will enter the market, causing price to rise, reducing profits for existing firms.

C  Firms will enter the market, causing price to rise, increasing profits for existing firms.

D  Firms will enter the market, causing price to fall, reducing profits for existing firms.

E  Firms will leave the market, causing price to rise, reducing profits for existing firms.

A  All of these

B  The long run provides enough time for firms to enter and exit a market.

C  In the long run a firm has no fixed costs. The long run provides enough time for firms to enter and exit a market.

D  In the long run a firm will be more profitable. The long run provides enough time for firms to enter and exit a market.

A  1 = marginal cost, 2 = average variable cost, 3 = average total cost

B  1 = marginal revenue, 2 = average variable cost, 3 = average total cost

C  1 = marginal cost, 2 = average total cost, 3 = average fixed cost

D  1 = marginal revenue, 2 = average total cost, 3 = average variable cost

E  1 = marginal cost, 2 = average total cost, 3 = average variable cost

A  $84

B  $89

C  $85

D  $79

E  $94

A  7

B  8

C  9

D  5

E  6

A  There exists a large number of sellers

B  Firms can affect the selling price adjusting production levels.

C  Firms can easily enter and exit the market.

D  Firms in the market all sell an identical product. Consumers are indifferent as to which seller they buy from as all products are the same.

E  Individual firms do not exert control over price.