The ________ elastic a firm's demand curve, the greater its ________.

Select one:

less; monopoly power

more; monopoly power

more; costs

less; output

2.This market situation is much like a pure monopoly except that its member firms tend to cheat on agreed upon price and output strategies. What is it?

Select one:

Cartel

Natural monopoly

Market sharing monopoly

Duopoly

3.Under perfect price discrimination, consumer surplus:

Select one:

is greater than zero.

is maximized.

is less than zero.

equals zero.

4.Suppose the market demand curve is P = 40 - 2Q and the constant marginal cost of production is MC = 20. Which of the following is a valid expression for the reaction function of firm 1?

Select one:

Q1= 5 - 1/2Q2

Q1= 5 - Q2

Q1= 10 - 1/2Q2

Q1= 40 - Q2

5/0 F'a AC MC MR Qs Quantity