1. In the market depicted in the above figure, if a single-price monopoly maximizes its profit, which area shows the deadweight loss?

   		area FHIL
   		area IJH
   		area GHJM
   		area LJK

1 points

Question 10

1. Marginal revenue is

   		the additional profit the firm earns when it sells an additional unit of output.
   		the added revenue that a firm takes in from selling an additional unit of output.
   		the difference between total revenue and total costs.
   		the ratio of total revenue to quantity.

1 points

Question 11

1. Profit-maximizing firms want to maximize the difference between

   		marginal revenue and average cost.
   		marginal revenue and marginal cost.
   		total revenue and marginal cost.
   		total revenue and total cost.

1 point

Question 12

1. The profit-maximizing behavior of a monopoly is different from that of a perfectly competitive firm in that a monopoly can

   		control the desired price and output to maximize profits, but a perfectly competitive firm can only choose the desired output.
   		control the position of its demand schedule, but a competitive firm cannot.
   		only choose the desired output, while a competitive firm can control only price.
   		only choose the desired price, while a competitive firm can control only output.