1. Explain which cost industry is represented in the graph below?I [1 point] Answer: Price 2. For which market structure does price = marginal revenue? Explain your answer. {1 point] Answer: 3. Which one of the following is not a characteristic of perfect competition: [1 point} a. Products in this market tend to be exclusive b. Fevur sellers 81 many buyers c. They sell a differentiated product d. Only perfect substitutes exist for this market structure e. A, B, and C f. All of the above 4. Why do perfectly competitive firms have to charge the equilibrium price? [1 point] Answer: 5. Explicit costs are outofpocket coshIr such as expenses on labor, raw materials, and rent. [TKF] Explain your choice. [1 point} 6. Implicit costs are costs a business incurs without actually spending money. (T/F) Explain your choice. (1 point) Answer: 7. What is a market monopoly? (1 point) Answer: 8. Which of following depicts a reason for why oligopolies are mutually interdependent? (1 point) a. They possess inelastic demand due to limited competition b. The sellers can't keep track with each other c. Profit margins are small d. The sellers can form a cartel 9. What is the goal of rent seeking? And B) which market structures practice it? (2 points) Answer: 10. Which type of price discrimination enhances economies of scale the most? (1 point) Answer: 11. Why are economies of scale a barrier to entry? (1point) Answer: 12. There are three primary reasons behind the pricing of a product. Meaning, three particular concepts we learned together determine collectively what the final price for a product will be. What are they? (3 points) Answer: 13. Give an example of a company unable to price discriminate. Explain your answer. (1 point) Answer:14. Which market structure does the graph below re present, and b} is this company at a profit maximization or loss minimization point? Explain thoroughly. [2 points] Answer: Ell-Mill! 15. Which marlret structure(s) isIare represented in the graph below and b] is it at a prot maximization or a loss minimization point?I Explain thoroughly. (2 points) Answer: AT: 16. Which market structure(s} isa'rare represented in the graph below and II] is it at a prot maximization or a loss minimization point'iII Explain thoroughly.r and specify the exact value gained or lost. {2 points) Answer: Marginal coat Average cos! {E 9 E T} D Demand Marginal revenue 0 Q1 = LDUD Units of output 1?. A cotton farmer selling wholesale cannot price discriminate. {TIP} Explain your answer. {1 point] Answer: 13. Why is the intersection of the MC and MR curyes so very important? {1 point] Answer: 19. Are monopolies likely to have inelastic or elastic supply? Explain your answer. [1 point] Answer: 21:). What can you conclude about a company with a price of $11 and marginal revenue of 5105!]? Can you from this information ascertain whether a profit exists for this firm or not? [1 point] Answer: 21. If for a given rm ATC = $115r MR = $95, and (ID = E units, then a] what is MC, and b} at what value are prots maximized? [2 poinE]
