Moving up a straightline demand curve price elasticity of demand

Question 7

Given the cost curves in the​ diagram, what market situation would you expect to​ occur?

Part 2

A.

A natural monopoly.

B.

A cartel.

C.

Price discrimination.

D.

Price differentiation.

...

Question content area right

Part 1

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Question 26

The demand curve faced by a purely monopolistic seller is

Part 2

A.

perfectly​ inelastic, whereas that facing the purely competitive firm is perfectly elastic.

B.

downward​ sloping, whereas that facing the purely competitive firm is perfectly inelastic.

C.

perfectly​ elastic, whereas that facing the purely competitive firm is downward sloping.

D.

downward​ sloping, whereas that facing the purely competitive firm is perfectly elastic.

Question 27

From the perspective of the​ firm, what is the difference between the short run and the long​ run?

Part 2

A.

In the long​ run, at least one input is​ fixed, while in the​ short-run all inputs are variable.

B.

There is no difference between the short run and the​ long-run from the perspective of the firm.

C.

In the short​ run, at least one input is​ fixed, while in the long run all inputs are variable.

D.

The short run is a period of less than a year while the long run is a period of one year or more.

Question 29

When caclulating economic​ profits, economists take into consideration

A.

neither explicit nor implicit costs.

B.

only implicit costs.

C.

both explicit and implicit costs.

D.

only explicit costs.

Question 30

Suppose a monopolist is producing where the marginal cost curve intersects the demand curve. The monopolist

Part 2

A.

can increase profits by selling more units at a higher price.

B.

is maximizing profits.

C.

can increase profits by selling fewer units since marginal cost is greater than marginal revenue.

D.

can increase profits by selling more units since marginal cost is less than marginal revenue.

Question 22

A perfectly competitive​ firm's short-run supply curve is

A.

nonexistent.

B.

a combination of the ATC and AVC curves.

C.

its marginal cost curve at and above the intersection with the AVC curve.

D.

the same as its ATC curve.

Question 23

Charging different prices for similar products that have different marginal costs is called

Part 2

A.

price differentiation.

B.

price dumping.

C.

predatory pricing.

D.

price discrimination.

Question 24

Why does the marginal product of labor eventually decline as more labor is used with another fixed​ input?

Part 2

A.

The labor will​ have, on​ average, more units of the other inputs to combine with and the increases to total output obtained from more labor will decrease.

B.

The labor will​ have, on​ average, fewer units of the other inputs to combine with and the increases to total output obtained from more labor will increase.

C.

The labor will​ have, on​ average, more units of the other inputs to combine with and the increases to total output obtained from more labor will increase.

D.

The labor will​ have, on​ average, fewer units of the other inputs to combine with and the increases to total output obtained from more labor will decrease.

Question 25

If, at the​ profit-maximizing level of​ output, average costs are less than average​ revenue, a perfectly competitive firm will be​ ________ and we would expect supply to eventually shift​ ________.

A.

making economic​ profits; outward

B.

incurring economic​ losses; inward

C.

making economic​ profits; inward

D.

incurring economic​ losses; outward