Question 11

2pts

A profit-maximizing monopolist will produce the level of output at which

Group of answer choices

average revenue is equal to average total cost.

average revenue is equal to marginal cost.

marginal revenue is equal to marginal cost.

total revenue is equal to opportunity cost.

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Question 12

2pts

A monopolist faces a

Group of answer choices

horizontal demand curve.

vertical demand curve.

downward-sloping demand curve.

U-shaped demand curve.

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Question 13

2pts

In order to sell more of its product, a monopolist must

Group of answer choices

sell to the government.

sell in international markets.

lower its price.

use its market power to force up the price of complementary products.

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Question 14

2.5pts

A monopolist can sell 300 units of output for $45 per unit. Alternatively, it can sell 301 units of output for $44.80 per unit. The marginal revenue of the 301stunit of output is

Group of answer choices

-$120.00.

-$75.40.

-$15.20.

$75.40.

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Question 15

2.5pts

If a monopolist sells 100 units at $8 per unit and realizes an average total cost of $4 per unit, what is the monopolist's profit?

Group of answer choices

$200

$400

$600

$800

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Question 16

2pts

Collusion

Group of answer choices

is exactly the same thing as competition.

involves cooperative actions by sellers at the expense of buyers.

requires competitive actions by sellers to win customers from rival firms.

can only be achieved in price-taker markets.

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Question 17

2pts

It is difficult to predict the behavior of oligopolistic firms because

Group of answer choices

there are few real-world examples of oligopolies for economists to study.

oligopolists make decisions independently of each other.

firms in oligopolistic industries react to each other's behavior in many ways.

economists have paid little attention to the topic in recent years and so have not yet applied to it the techniques of modern economic theory.

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Question 18

2pts

Because oligopoly markets have only a few sellers, the actions of any one seller

Group of answer choices

do not affect other sellers in the market.

can have a large impact on the profits of other sellers in the market.

will not affect how other firms behave in the market.

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Question 19

2pts

Game theory is useful to analyze oligopoly markets because

Group of answer choices

each firm is a price taker.

the market is comprised of a single firm.

the firms in the market engage in strategic behavior.

each firm produces a differentiated product.

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Question 20

2pts

The difficulty in analyzing oligopolistic behavior arises from the

Group of answer choices

degree of government regulation of the market structure.

interdependent nature of oligopolistic decisions.

large number of firms in the industry.

market power of consumers.