Please answer these questions

Question 9

Which of the following rules is satisfied when a monopoly maximizes profits?

Price > AVC.

Price > MC.

MR = MC.

All of the above.

Question 18

A monopoly has a high degree of market power because of:

The lack of close substitutes for its product.

Barriers to entry.

A downward-sloping demand curve for its product.

All of the above.

Question 25

If there is no pollution associated with an economic activity, social costs are:

The full resource costs of an economic activity.

Equal to private costs.

Equal to the costs of an economic activity borne by the producer.

All of the above.

Question 26

If an electric company does not have to pay for its contribution to acid rain, then it will be producing:

Too much electricity from a social viewpoint.

Inefficiently from a private viewpoint.

Unprofitably from a private viewpoint.

At a price that is too high from a social viewpoint.

Question 27

If the economy relies entirely on the market mechanism, it tends to:

Underproduce goods that yield external benefits and overproduce goods that yield external costs.

Underproduce goods that yield external benefits and underproduce goods that yield external costs.

Overproduce goods that yield external benefits and overproduce goods that yield external costs.

Overproduce goods that yield external benefits and underproduce goods that yield external costs.

Question 35

The optimal rate of pollution:

Is zero.

Occurs at the point where the opportunity cost of further pollution control equals the financial benefits to the producer in terms of increased sales.

Occurs where the social marginal benefit of pollution control equals its social marginal cost.

Is the rate that reduces production costs but does not result in externalities.