1paint To maximize profits, a monopolist will: Maximize revenues Set total revenues equal to total costs Set marginal revenue equal to marginal cost Produce at the quantity where average total costs are minimized - 1 point Micrasoft, because it is one of the only sellers of a certain product, is considered a monopsony. True False E 1 point 'Which of the following is true regarding a market where a monopsony exists: The price will be higher compared to a perfectly competitive market. The price will be lower compared to a perfectly competitive market. The guantity will be higher than a perfectly competitive market The supply curve will be perfectly inelastic . 'Which of the following is not a characteristic of a firm in a monopolistically competitive market? The demand curve is downward sloping There are few firms in the market The firm has some control over the price There are low barriers to entry 1paint 'Which of the following statements is true? The marginal expenditure eurve will be above the supply curve in a market where there is a monopsony The price elasticity of demand s not related to what optimal advertising expenditures will be Afirm in a moenopolistically competitive market can sell 2s many units as it would like te at the market price Cost-plus pricing means that firms will set price below marginal cost s [ 'We expect price-fixing to be commen in a monopolistically competitive setting. True False B For a firm in a monopolistically competitive market, the gross profit for each additional unit sold is: MC - MR P-MC P - MC - [advertising cost) Mone of the other answers are correct o As firms increase their advertising expenditures, we expect the demand for the product to become more inelastic. True False