1.The demand curve of a monopolist.

a. is perfectlyelastic

b. coincides with its marginal revenue curve

c. lies below its marginal revenue curve

d. lies above its marginal revenue curve

2.A monopolist will maximize profits by producing that output at which marginal cost is equal to.

a. average total cost

b. marginal revenue

c. average variable cost

d. average totalcost

3. Under Monopoly,the firmmay earn economic profits in the long run because:

a. of advertising

b. marginal revenue is constant as sales increase

c. of barriers to entry

d. of rising average fixed costs

4. Concentration ratio measures the.

a. geographic location of the largest corporations in each industry

b. degree to which product price exceeds marginal cost in various industries

c. percentage of total sales accounted for by the four largest firms in the industry

d. number of firms in an industry