Question 31

Answer the question on the basis of the following data confronting a firm, which can sell as many units of output as it wants at the same price of $10,

OUTPUTMARGINAL COST (MC)

0--

1$8

27

36

49

512

615

Refer to the data.What is the optimal output for this firm?

Group of answer choices

3.

4.

5.

6.

Question 32

Refer to the diagram for a pure monopolist. Monopoly output will be:

Group of answer choices

betweenfandg.

h.

g.

f.

Question 33

Which of the following is true for the marginal revenue curve of a monopolist?

Group of answer choices

is a straight, upsloping curve.

rises at first, reaches a maximum, and then declines.

becomes negative when output increases beyond some particular level.

is a straight line, parallel to the horizontal axis.

Question 34

Refer to the diagram for a pure monopolist. If this firm charges the price indicated by "a" on this diagram,

Group of answer choices

it will be producing output "f."

it will be maximizing profits or minimizing losses.

it will be producing a level of output greater than its optimal amount.

it will be breaking-even.

Question 35

The supply curve for a monopolist is:

Group of answer choices

perfectly elastic.

upsloping.

that portion of the marginal cost curve lying above minimum average variable cost.

nonexistent.

Question 36

A pure monopolist is producing an output such that ATC = $10,P= $12, MC = $5, and MR = $5. This firm is realizing:

Group of answer choices

an economic profit that could be increased by producing more.

an economic profit that could be increased by producing less.

its maximum economic profit.

an economic loss.

Question 37

Which of the following describes a monopoly?

Group of answer choices

any market in which the demand curve to the firm is downsloping.

a standardized product being produced by many firms.

a single firm producing a product for which there are no close substitutes.

a large number of firms producing a differentiated product.

Question 38

The demand function of a monopoly is such that it can sell 3 units per week at $8 each, but 4 units per week at $7 each. The marginal revenue of the 4th unit per week is:

Group of answer choices

$8

$7

$6.

$4.

Question 39

If a pure monopolist is producing at that output whereP= MC, then:

Group of answer choices

its economic profits will be zero.

it will be realizing losses.

it will achieve economic efficiency.

it will be maximizing its profits or minimizing its losses.

Question 40

Which of the following is true for a monopoly?

Group of answer choices

Its marginal revenue is always equal to the price.

Its supply curve is positively sloping.

It produces a product for which there are close substitutes.

Even though it is a price-maker (has much control over the price it charges), it can make losses at its optimal output.