Assume that the typical firm operates under perfect competition. The market price is currently at P=114.The (inverse) market demand function is P=154-4Q.

Question 40(1 point)

What quantity will the typical firm supply at a price of P=114?

Question 40 options:

2

3

4

5

Question 41(1 point)

How much profit does the typical firm make at a price of P=114?

Question 41 options:

0

120

328

648

Question 42(1 point)

How many firms will be in the market when the price is P=114?

Question 42 options:

1

2

3

4

Question 43(1 point)

What will be the long run equilibrium price?

Question 43 options:

2

12

34

68

Question 44(1 point)

What quantity will the typical firm supply in the long run equilibrium?

Question 44 options:

1

2

3

4

Question 45(1 point)

How many firms will be in the market in the long run equilibrium?

Question 45 options:

8

10

12

15

03_Monopoly

Now assume that the typical firm operates as a monopolist that faces the demand function P=72-0.5Q.

Question 46(1 point)

What is the monopolist's marginal revenue function?

Question 46 options:

MR=72-0.25Q

MR=72-Q

MR=72-2Q

MR=72-4Q

Question 47(1 point)

What profit maximizing quantity does the monopolist choose?

Question 47 options:

3

4

5

6

Question 48(1 point)

What is the profit maximizing price?

Question 48 options:

70

68

66

64

Question 49(1 point)

What is the monopolist's profit?

Question 49 options:

98

108

118

128

Question 50(1 point)

What is the point price elasticity of demand at the profit maximizing price?

Question 50 options:

-8

-10

-12

-14