1.A monopolist faces the inverse demand curve P = 60 - Q. It has variable costs of Q2so that its marginal costs are 2Q, and it has fixed costs of 30. The monopoly's maximum profit is

510.

420.

220.

370.

2.Marginal Revenue is

1. equal to P(1+1/).
2. equal to P when the price elasticity of demand is infinite.
3. the increase in total revenue from selling one more unit of output.
4. All of the above.

3.Which of the following markets is closest to a monopoly?

cable television

the only gas station for 100 miles

garbage disposal

4.The situation in which one firm can produce the total output of the market at a lower cost than several firms is called a

ruling monopoly.

natural monopoly.

cost monopoly.

pure monopoly.

A monopolist faces the inverse demand curve P = 60 - Q. It has variable costs of Q 2 so that its marginal costs are 2Q, and it has fixed costs of 30. The monopoly's profit-maximizing output is

15.

10.

5.

20.

If the inverse demand function for a monopoly's product is p = 100 - 2Q, then the firm's marginal revenue function is

200 - 4Q.

100 - 4Q.

-2.

200 - 2Q.

a firm with a 90% market share