Nsu Eco Quiiz

* Question 1

4 out of 4 points

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  | At the current level of output a firm's marginal cost equal 16 and marginal revenue equals 10. The firms  

 Answer | | | |

| Selected Answer: |   should produce less. |

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* Question 2

4 out of 4 points

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  |  If the demand curve a monopoly faces is P = 100 - 2Q, then profit maximization 

 Answer | | | |

| Selected Answer: |   cannot be determined solely from the information provided. |

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* Question 3

4 out of 4 points

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  | If the demand curve a monopoly faces is P = 100 - 2Q, and MC is constant at 16, then profit maximization 

 Answer | | | |

| Selected Answer: |   is achieved when 21 units are produced. |

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* Question 4

4 out of 4 points

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  | A monopolist faces the demand curve P = 500 – 5Q. Without knowing anything about costs, which of the following prices would definitely not be a profit-maximizing option for the monopolist?Answer | | | |

| Selected Answer: |   200 |

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* Question 5

4 out of 4 points

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  | A monopolistAnswer | | | |

| Selected Answer: |   both b

and c |

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* Question 6

4 out of 4 points

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  | A firm with market powerAnswer | | | |

| Selected Answer: |   both a

and b |

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* Question 7

4 out of 4 points

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  | A monopoly firm faces a demand function P = 30 - 0.075Q and the corresponding MR function, MR = 30 - 0.15Q.

At any price above $______ demand is elastic.Answer | | | |

| Selected Answer: |   $15 |

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* Question 8

4 out of 4 points

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  | As above, a monopoly firm faces a demand function P = 30 - 0.075Q and the corresponding MR function, MR = 30 - 0.15Q.

If production costs are constant and equal to $10 (i.e., LAC = LMC = $10), what price will the monopoly charge?Answer | | | |

| Selected Answer: |   $20 |

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* Question 9

4 out of 4 points

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  |...