a small number of firms are acting strategicallyĨ. each firm takes the market price as given.ĭ. a single firm chooses a point on the market demand curve.Ĭ. each firm produces a different product from other firms.ī. The key feature of an oligopolistic market is that (d)Ī. Firms produce at the minimum of average total cost.ħ. What is true of a monopolistically competitive market in long-run equilibrium? (a)ĭ. Which of the following goods best fits the definition of monopolistic competition? (d)Ħ. the monopoly firm chooses a quantity that fails to equate price and average revenue.ĥ. consumers who buy the good have to pay more than marginal cost, reducing their consumer surplus.ĭ. some potential consumers who forgo buying the good value it more than its marginal cost.Ĭ. the monopoly firm makes higher profits than a competitive firm would.ī. The deadweight loss from monopoly arises because (b)Ī. a quantity and a price that are both too lowĤ. a quantity and a price that are both too high.ĭ. a quantity that is too high and a price that is too low.Ĭ. a quantity that is too low and a price that is too high.ī. Compared to the social optimum, a monopoly firm chooses (a)Ī. For a profit-maximizing monopoly that charges the same price to all consumers, what is the relationship between price P, marginal revenue MR, and marginal cost MC? (b)ģ. For help in your assignments email A firm is a natural monopoly if it exhibits the following as its output increases: (d)Ģ. If you found this helpful please donate by clicking on the button below to keep the website running.
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