In the long run, a pure monopolist will maximize profits by producing that output at which marginal cost is equal to Multiple Choice 02:29:32 O average total cost. O marginal revenue. O average variable cost. O average cost.Monopolistic competition means N Multiple Choice 02:28:56 O a market situation where competition is based entirely on product differentiation and advertising. O a large number of firms producing a standardized or homogeneous product. O many firms producing differentlated products. O a few firms producing a standardized or homogeneous product.3 An exclusive legal right as sole producer for 20 years granted to an Inventor of a product is called a Multiple Choice 02.28:36 O copyright. O franchise. O patent. O license.4 Output Total Cost $ 2,506 2,700 3,100 X 02:28:10 3 3,706 4 4,506 UT 6,000 The table shows the total costs for a purely competitive firm. If the product sells for $1,500 a unit, the firm's profit-maximizing output Is Multiple Choice O 5. O 1 . O 2. O 3.5 An industry comprising a very large number of sellers producing a standardized product is known as Multiple Choice 02-27:42 O monopolistic competition. O oligopoly. O pure monopoly. O pure competition.6 The total revenue of a purely competitive firm from selling 6 units of output is $48. Based on this Information, the unit price of the output must be Multiple Choice 8 02:27:21 O $8. O $42. O $288. O $54.7 Answer the question on the basis of the following cost data. Output Total Cost $ 24 1 33 02:27:06 2 41 3 48 4 54 5 61 6 69 The average fixed cost of producing 6 units of output Is Multiple Choice O $7.50. O $24. O $11.50. O $4.00.8 A purely competitive seller Is Multiple Choice 02-26:37 O both a "price maker" and a "price taker." O neither a "price maker" nor a "price taker." O a "price taker." O a "price maker."9 Suppose that Joe sells pork in a purely competitive market. The market price of pork is $2 per pound. Joe's marginal revenue from selling the 25th pound of pork would be Multiple Choice X 0Z-26:17 O $2 O $50. O 25 lbs. O $25.Answer the question on the basis of the following output data for a firm. Assume that the amounts of all nonlabor resources are fixed. 10 Number of Workers Units of Output 1 30 X 02:25:55 70 W N 122 4 165 190 210 Diminishing marginal returns become evident with the addition of the Multiple Choice O first worker. O third worker. O fourth worker. O sixth worker.The demand curve of a monopolistically competitive producer is less elastic than that of a purely competitive producer. 11 True or False 02.25:31 True False12 The practice of price discrimination is associated with pure monopoly because Multiple Choice 02:25:13 O It can be practiced whenever a firm's demand curve is downsloping. O monopolists have considerable ability to control output and price. O monopolists usually realize economles of scale. O most monopolists sell differentiated products.Answer the question based on the demand and cost schedules for a monopolistically competitive firm given In the table below. 13 Quantity Price Demanded Total Cost Output $ 26 1 $ 10 1 X 02.24:56 18 2 20 W N 16 3 29 14 4 36 4 12 5 40 5 6 10 6 42 What output quantity will the monopolistically competitive firm produce to maximize profits? Multiple Choice O 2 O 3 O O 614 A monopolistically competitive Industry combines elements of both competition and monopoly. The monopoly element results from Multiple Choice 3 02:24:38 O the likelihood of collusion. O high entry barriers. O product differentiation. O mutual Interdependence In decision making.15 Pure monopoly refers to Multiple Choice 02:24:17 O any market In which the demand curve for the firm is downsloping. O a standardized product being produced by many firms. O a single firm producing a product for which there are no close substitutes. O a large number of firms producing a differentlated product.16 The question is based on the following table, which provides Information on the production of a product that requires one variable input. Input Total Product 1 5 8 02:24:00 2 20 3 32 4 42 50 55 58 58 56 With the addition of the sixth unit of Input, the marginal product is Multiple Choice O 5 and the average product Is 55. O 105 and the average product is 9.17. O 5 and the average product Is 9.17. O 9.17 and the average product Is 5.17 Which of the following best approximates a pure monopoly? Multiple Choice 02-23:34 O a gas station In a large city O the Kansas City wheat market O the only grocery store In a small Isolated town O the soft drink market18 Suppose that you could either prepare your own tax return In 12 hours or hire a tax specialist to prepare it for you in 3 hours. You value your time at $25.00 an hour, the tax specialist will charge you $60 an hour. The opportunity cost of preparing your own tax return Is Multiple Choice 8 02:23:19 O $480. O $60. O $180. O $300Suppose that a firm produces 200,000 units a year and sells them all for $10 each. The explicit costs of production are $1,500,000 and the Implicit costs of production are $300,000. The firm earns an accounting profit of 19 Multiple Choice 8 02:27:56 O $500,000 and an economic profit of $200,000. O $2,000,000 and an economic profit of $200,000. O $200,000 and an economic profit of $2,000,000. O $200,000 and an economic profit of $500,000.Assume that the short-run cost and demand data given in the tables below confront a monopolistic competitor selling a given product and engaged in a given amount of product promotion. 20 Cost Data Demand Data Quantity Total Output Total Cost Demanded Price X 02-22:39 $ 25 $ 60 40 1 55 2 45 2 50 3 55 3 45 70 4 40 5 90 5 35 115 30 If the firm sells 3 units of output, marginal revenue will be Multiple Choice O -$5. O $35. O $135. O $165