ECON 303 Chapter 10

question

When the demand curve is downward sloping, marginal revenue is

answer

less than price

question

A monopolist has determined that at the current level of output the price elasticity of demand is
minus−0.15.

Which of the following statements is true

answer

The firm should cut output

question

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

answer

less; monopoly power

question

What is the value of the Lerner index under perfect competition?

answer

question

Use the following two statements to answer this question:

I. A firm can exert monopoly power if and only if it is the sole producer of a good.

II. The degree of monopoly power a firm possesses can be measured using the Lerner Index: L=(P
minus−
AC)/AC.

answer

Both I and II are false.

question

Under which of the following scenarios is it most likely that monopoly power will be exhibited by firms

answer

When there are few firms in the market and the demand curve faced by each firm is relatively inelastic

question

If a monopolist's profits were taxed away and redistributed to its consumers

answer

inefficiency would remain because output would be lower than under competitive conditions

question

How should a monopsonist decide how much of a product to buy?

A monopsonist should buy the quantity where

answer

the marginal value curve intersects the marginal expenditure curve

question

What is meant by the term "monopsony power"?

answer

the buyer's ability to affect the price of a good because the marginal expenditure curve lies above the average expenditure curve.

question

buyer will have some monopsony power if

answer

it faces an upward-sloping supply curve

question

Compared to a competitive market, a monopsonist will pay

answer

a lower price and purchase less

question

Which of the following correctly describes a factor that will reduce a firm's monopsony power

answer

As the market supply curve becomes more elastic, the difference between marginal expenditure and average expenditure decreases

question

In which of the following labor markets is there likely to be substantial monopsony power

answer

The market for coal miners in a small mountain town

1 of 13

question

When the demand curve is downward sloping, marginal revenue is

answer

less than price

question

A monopolist has determined that at the current level of output the price elasticity of demand is
minus−0.15.

Which of the following statements is true

answer

The firm should cut output

question

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

answer

less; monopoly power

question

What is the value of the Lerner index under perfect competition?

answer

question

answer

Both I and II are false.

question

Under which of the following scenarios is it most likely that monopoly power will be exhibited by firms

answer

When there are few firms in the market and the demand curve faced by each firm is relatively inelastic

question

If a monopolist's profits were taxed away and redistributed to its consumers

answer

inefficiency would remain because output would be lower than under competitive conditions

question

How should a monopsonist decide how much of a product to buy?

A monopsonist should buy the quantity where

answer

the marginal value curve intersects the marginal expenditure curve

question

What is meant by the term "monopsony power"?

answer

the buyer's ability to affect the price of a good because the marginal expenditure curve lies above the average expenditure curve.

question

buyer will have some monopsony power if

answer

it faces an upward-sloping supply curve

question

Compared to a competitive market, a monopsonist will pay

answer

a lower price and purchase less

question

Which of the following correctly describes a factor that will reduce a firm's monopsony power

answer

As the market supply curve becomes more elastic, the difference between marginal expenditure and average expenditure decreases

question

In which of the following labor markets is there likely to be substantial monopsony power

answer

The market for coal miners in a small mountain town

Continue to order Get a quote

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

ECON 303 Chapter 10

Recent Posts

Recent Comments

Calculate the price of your order

Our guarantees

Money-back guarantee

Zero-plagiarism guarantee

Free-revision policy

Privacy policy

Fair-cooperation guarantee