the diagram are showing the cost and demand curves for two firms. question 1 to 9 refer to the diagram
Pictured on the bottom of this page are diagrams showing the cost and demand curves for two firms. Questions (1) through (9) refer to these diagrams: (1) Which firm IS an illegal monopoly ?_ (2) This illegal monopoly can maximize its profits by selling Q= at P = S (3) At the price you answered for question (2), this same firm will earn profits = $_ (4) The maximum technical efficiency output level for this monopoly is: Q =_ (5) The OTHER firm below, (the one that is NOT a monopoly), can maximize its profits by selling Q =. at P = $ (6) This firm in question (5) can earn profits = $_ charge the price you answered for question (5). if they sell the quantity and (7) The maximum technical efficiency output level for the firm in questions (5) and (6) is equal to: Q = (8) Which of these two firms is likely to be a small, neighborhood retail store ? (9) Which of these two firms is likely to be charging Price = Average Cost in the long run ? 42 mc MC 22 AC as DX English (United States) Focus E MAY O W X P ... GC MacBook 80 F3 F4 F5 DD F7 DII F8 F9 % "> * 4 5 8ABC A . Exam #3 - Compatibility Mode - Saved to my Mac Design Layout References Mailings Review View 10.5 A" A Aa Ap X 2 X A v DAY E Styles Styles Dictate Pane 7 whoi vi most two films is Intry to ve charging Price = Average Cost in the long run ? 42 MC 2 2 AC 20 25 22 * 12 FIRM'S Demand MARGINAL 7 MARGINAL REVENUE! 100 300 900 Q 50 0 800 1200 FIRM X FIRM Y ) For questions (10) through (25) you write correct word for the blank space An illegal monopoly must have (10)_ that protect him from competition entering his market. He cannot be selling a product that has many close (11) His demand curve is very steep because demand for his product is very (12)_ English (United States) E Focus E MAY 12 30 W X EO NG MacBookTable Window Help ABC A Exam #3 - Compatibility Mode - Saved to my Mac aw Design Layout References Mailings Review View 10.5 ~ A A Aav Ap Uv ab X 2 X' Av DVAv E E Styles Styles Pane The monopolist will restrict his (13) to get the highest price. Long run market demand must be (14)_ for a Cartel to survive and do well. Long run market supply must be (15) _for a Cartel to survive and do well. According to Hotellings Paradox, an industry with a small number of sellers with large market shares will often end up offering products that are highly (16) and are aimed at the (17) of the market. When firms in an oligopoly have a tacit agreement to "follow the leader" in raising prices, it is called (18) Oligopolies often have a demand curve that is (19) above the present price because if they (20) their prices, their rivals will NOT match them. Their demand curve is (21)_ below the present price because ifthey (22) their prices the rival firms WILL do the same thing. 23) Under Monopolistic Competition, firms will produce with capacity in the long run. 24) Firms in an Oligopoly usually have very start up costs for advertising and marketing. 25) The type of industry where firms produce "differentiated" products is an words English (United States) Focus - MAY W P 4 S MacBook
