1.Demand is said to be elastic when the:

Group of answer choices

percentage change in quantity demanded is less than the percentage change in price.

percentage change in quantity demanded is greater than the percentage change in price.

change in quantity demanded is greater than the change in price.

change in quantity demanded is less than the change in price.

2.If a tax is physically paid by sellers, then sellers bear the full 100% burden of the tax.

Group of answer choices

False

True

3.If MR > MC, the monopolist should:

MR = Marginal Revenue

MC = Marginal Cost

Group of answer choices

decrease production.

stop producing.

increase production.

maintain the same level of production.

4.If a monopolist can price discriminate among buyers, it will charge buyers with more elastic demands a higher price.

Group of answer choices

True

False

5.A monopoly firm is different from a competitive firm in that:

Group of answer choices

a monopolist can influence market price while a competitive firm cannot.

there are many substitutes for a monopolist's product while there are no substitutes for a competitive firm's product.

a monopolist's demand curve is perfectly inelastic while a competitive firm's demand curve is perfectly elastic.

a competitive firm has a U-shaped average cost curve while a monopolist does not.

6.A significant difference between monopoly and perfect competition is that:

Group of answer choices

free entry and exit is possible in a monopolized industry but impossible in a competitive industry.

profits are driven to zero in a monopolized industry but may be positive in a competitive industry.

the monopolist's demand curve is the industry demand curve while the competitive firm's demand curve is perfectly elastic.

competitive firms control market supply but monopolies do not.