1.For a monopolistic, firm marginal cost is constant at 200. The inverse demand function for product is P=300-Q, then the profit max.

a.Achieved by setting P=300

b.Achieved Only shutting down in short run

c.Achieved When 50 units (q) produced

d.Cannot be determined

2.For a monopolistic firm Marginal cost is constant at 20 Inverse demand function is P=30-(1/2)Q, profit is max is achieved when price is

a.25

b.15

c.30

d.20

3.The portion of the demand curve that moves a monopoly operates

a.Inelastic

b.Unitary elastic

c.None

d.Elastic

4.When would Monopolistic firm shutdown

a.Short run below afc

b.When Average Cost is less than price

c.When AVC is above short run

d.Never

5.Given Marginal cost is constant at 10 Inverse demand function is p=30-(1/2)Q the max profit could earn is

a.30

b.400

c.Unknown

d.20

6.A max profit monopoly will

a.Set P=to MC

b.Find profit maximizing qty by setting MC=MR

c.Set MR=0

d.Set P=MC

7.A monopoly

a.Price taker

b.Facing downward sloping demand

c.Max profit by setting MR (price) =to MC

d.None of the above

8.Demand Curve face monopolistic

a.Identical to Marginal revenue curve

b.Vertical

c.Lies above MR curve

d.Horizontal

9.What is the monopoly firm Marginal revenue function if the inverse demand function for its product is P=(1/2)a-3bQ?

a.()a-4bQ

b.(1/2)a-3bQ

c.(1/2)a-6bQ

d.A

10.What is the monopoly firm Marginal revenue function if the inverse demand is P=30p-1/3)q

a.30-(2/3) q

b.1/3

c.30

d.30-2Q