1. The table below depicts the demand schedule for electricity provided by the WattsUp Electric Company. 3 Price p 20 4 5 6 7 8 19 18 17 16 15 The marginal revenue from selling the 5th unit of electricity is A. $18. B. $16. C. $14 D. $12 E. 2. AR A. Yes. B. No. AT MR Q $90 Using the table in 1 above, should WattsUp lower its price from $19 to $18 if the marginal cost of producing the 5th unit of electricity is $12? 3. A. B. C. D. 4. A. B. C. ABC D D. Which of the following is not a characteristic of a monopoly market? The degree of monopoly power a firm has is dependent on the number of substitutes there are for the product. Monopolists maximizing profits by finding the output where price equals marginal cost. Barriers to entry in a monopoly market allow the firm to earn positive economic profits in the long-run. The monopolist is a price searcher. If it wants to charge a higher price for its product it must reduce the amount that it offers for sale. Comparing the long-run competitive equilibrium with the monopoly equilibrium economic theory predicts that a monopolist charges a higher price than would be the case under perfect competition. a monopolist produces less output than would be the case under perfect competition. a monopolist can earn a positive economic profit in the long-run whereas perfectly competitive firms can a zero economic profit in the long run. All of the above are true.