Microeconomics

Please help with these 8 questions

Question 1 2 pts (04.01 MC) The government of a small country is trying to encourage competition in the market for product X and offers a significant per-unit subsidy. However, it fails to incentivize an increase in competition. Which of the following could explain this scenario? (O The price elasticity of demand is very high. (O A per-unit subsidy does not change output decisions. O No firm in the industry has market power. (O The firms in the market are selling indistinguishable units of product X. (O There are insurmountable barriers to entry into the market. Question 2 2 pts (04.01 MC) Deniques Limited is the only provider of sophisticated medical equipment in Farland. It perceives the demand curve it faces to be the same as the market demand curve. If its demand is represented by P = 100 - 2Q, which of the following is correct about Deniques Limited? (O Anincrease in the price decreases economic losses. (O Adecrease in price decreases the quantity sold. (O A decrease in price increases the quantity sold. (O Higher levels of output bring in increasingly lower total revenue if demand is elastic. (O Maintaining the current price decreases the quantity sold over time. Question 3 2 pts (04.02 MC) Which of the following characteristics are unique to the monopoly market structure? () Market power () Persistent economic profits () Marginal revenue beneath demand () Economies of scale () An insurmountable barrier to entry Question 4 2 pts (04.02 MC) Use the graph to answer the question that follows. Price Pl P, P, 0 . Q Q, Quentily (units) What would be the area of deadweight loss at the profit-maximizing quantity? () The area between average revenue and marginal revenue all the way to the price axis (O) The area between the marginal cost curve and the marginal revenue curve () The area between G, M, and the intersection of MC and AR () The area between P5 up to the marginal revenue curve (O) The area between G, N, and the intersection of marginal cost and average total cost Question 5 2 pts (04.02 MC) A firm is the only supplier of sprockets. The allocatively efficient output of sprockets is 40 million units. Consumers would pay $6 per sprocket at that price level. The firm is producing 30 million sprockets. Which of the following statements must be true? () The firm is producing too much output. (O) The firm is charging more than the competitive price. (O) The firm is operating in a monopolistically competitive market. () The firm's marginal revenue is higher than its market demand. (O) The firm's average total cost is equal to price at its current output level. Question 6 2 pts (04.03 MC) The graph below represents the demand graph of a monopolist. \" Price - = 10 0 30 40 50 60 0 80 90 100 Quantity The firm uses price discrimination to increase its profits. What is the change in the deadweight loss due to the price discrimination? O -$30 O $30 O -$60 O $60 (O Indeterminate Question 7 2 pts (04.03 HC) A firm operates as a monopolist in a small tourist town. It rents apartments, similar in structure, to tourists. In previous years, the company reduced the rental price in order to rent out additional apartments. The reduction in price reduced the firm's profits. In the current year, the company uses perfect price discrimination to charge for each incremental apartment. Which of the following is true due to the firm's price discrimination? () The consumer surplus increases, and the firm's surplus decreases. (O) The average price decreases, which reduces the total revenue from the first units sold. () The company's total economic profits decrease as the new price charged impacts all units sold. (O) Allocation of resources becomes even more inefficient, creating a greater deadweight loss. () The demand is equal to marginal revenue, which equals marginal cost for the last unit sold. Question 8 2 pts (04.04 MC) Use the graph to answer the question that follows. Q, Q, Quantity The graph represents a firm in monopolistic competition. Which of the following statements is accurate? () The firm is incurring economic losses, and it will leave the market. () The firm is earning positive economic profits. () The firm is in long-run equilibrium and earning normal profits. () The firm is earning zero economic profits and will increase output. () The firm is in short-run equilibrium, and more firms will enter the market