The marginal cost curve always intersects the average total cost curve at the po

Question

The marginal cost curve always intersects the average total cost curve at the point at which the average total cost curve Question 5 options: is at its maximum. has a vertical slope. is at its minimum. is zero.


In the long run, the perfectly competitive firm Question 7 options: may produce even if it suffers a loss. does not have a shut down price. earns an economic profit. earns only a normal profit.
Which of the following is NOT a characteristic of a perfectly competitive market? Question 9 options: The products sold by the firms in the market are homogeneous. There are many buyers and sellers in the market. It is difficult for a firm to enter or leave the market. Each firm is a price taker.

In a perfectly competitive market, if P > ATC at the Profit-maximizing level of output,, there will be Question 10 options: entry of new firms into the market. an upward pressure on price. an accounting loss for existing firms. an inward shift in the industry supply curve.

A monopolist can earn economic profits in the long run because Question 13 options: a monopoly makes the good or service better than anyone else. monopolies can legally force people to buy their products and to pay more for them than they are worth. a monopoly is by definition large, and this gives it the ability to make large profits. barriers to entry prevent new firms from entering the industry.

A monopolist engages in price discrimination Question 14 options: by charging the same price to all consumers. by charging a lower price to consumers whose demand is more elastic. by charging a higher price when marginal cost is lower. by charging a higher price to consumers whose demand is more elastic. The marginal cost curve always intersects the average total cost curve at the point at which the average total cost curve The marginal cost curve always intersects the average total cost curve at the point at which the average total cost curve is at its maximum. has a vertical slope. is at its minimum. is zero.


In the long run, the perfectly competitive firm Question 7 options: may produce even if it suffers a loss. does not have a shut down price. earns an economic profit. earns only a normal profit.
Which of the following is NOT a characteristic of a perfectly competitive market? Question 9 options: The products sold by the firms in the market are homogeneous. There are many buyers and sellers in the market. It is difficult for a firm to enter or leave the market. Each firm is a price taker.

In a perfectly competitive market, if P > ATC at the Profit-maximizing level of output,, there will be Question 10 options: entry of new firms into the market. an upward pressure on price. an accounting loss for existing firms. an inward shift in the industry supply curve.

A monopolist can earn economic profits in the long run because Question 13 options: a monopoly makes the good or service better than anyone else. monopolies can legally force people to buy their products and to pay more for them than they are worth. a monopoly is by definition large, and this gives it the ability to make large profits. barriers to entry prevent new firms from entering the industry.

A monopolist engages in price discrimination Question 14 options: by charging the same price to all consumers. by charging a lower price to consumers whose demand is more elastic. by charging a higher price when marginal cost is lower. by charging a higher price to consumers whose demand is more elastic. is at its maximum. has a vertical slope. is at its minimum. is zero.


In the long run, the perfectly competitive firm Question 7 options: may produce even if it suffers a loss. does not have a shut down price. earns an economic profit. earns only a normal profit.
Which of the following is NOT a characteristic of a perfectly competitive market? Question 9 options: The products sold by the firms in the market are homogeneous. There are many buyers and sellers in the market. It is difficult for a firm to enter or leave the market. Each firm is a price taker.

In a perfectly competitive market, if P > ATC at the Profit-maximizing level of output,, there will be Question 10 options: entry of new firms into the market. an upward pressure on price. an accounting loss for existing firms. an inward shift in the industry supply curve.

A monopolist can earn economic profits in the long run because Question 13 options: a monopoly makes the good or service better than anyone else. monopolies can legally force people to buy their products and to pay more for them than they are worth. a monopoly is by definition large, and this gives it the ability to make large profits. barriers to entry prevent new firms from entering the industry.

A monopolist engages in price discrimination Question 14 options: by charging the same price to all consumers. by charging a lower price to consumers whose demand is more elastic. by charging a higher price when marginal cost is lower. by charging a higher price to consumers whose demand is more elastic. In the long run, the perfectly competitive firm In the long run, the perfectly competitive firm may produce even if it suffers a loss. does not have a shut down price. earns an economic profit. earns only a normal profit.
Which of the following is NOT a characteristic of a perfectly competitive market? Question 9 options: The products sold by the firms in the market are homogeneous. There are many buyers and sellers in the market. It is difficult for a firm to enter or leave the market. Each firm is a price taker.

In a perfectly competitive market, if P > ATC at the Profit-maximizing level of output,, there will be Question 10 options: entry of new firms into the market. an upward pressure on price. an accounting loss for existing firms. an inward shift in the industry supply curve.

A monopolist can earn economic profits in the long run because Question 13 options: a monopoly makes the good or service better than anyone else. monopolies can legally force people to buy their products and to pay more for them than they are worth. a monopoly is by definition large, and this gives it the ability to make large profits. barriers to entry prevent new firms from entering the industry.

A monopolist engages in price discrimination Question 14 options: by charging the same price to all consumers. by charging a lower price to consumers whose demand is more elastic. by charging a higher price when marginal cost is lower. by charging a higher price to consumers whose demand is more elastic. may produce even if it suffers a loss. does not have a shut down price. earns an economic profit. earns only a normal profit.
Which of the following is NOT a characteristic of a perfectly competitive market? Question 9 options: The products sold by the firms in the market are homogeneous. There are many buyers and sellers in the market. It is difficult for a firm to enter or leave the market. Each firm is a price taker.

In a perfectly competitive market, if P > ATC at the Profit-maximizing level of output,, there will be Question 10 options: entry of new firms into the market. an upward pressure on price. an accounting loss for existing firms. an inward shift in the industry supply curve.

A monopolist can earn economic profits in the long run because Question 13 options: a monopoly makes the good or service better than anyone else. monopolies can legally force people to buy their products and to pay more for them than they are worth. a monopoly is by definition large, and this gives it the ability to make large profits. barriers to entry prevent new firms from entering the industry.

A monopolist engages in price discrimination Question 14 options: by charging the same price to all consumers. by charging a lower price to consumers whose demand is more elastic. by charging a higher price when marginal cost is lower. by charging a higher price to consumers whose demand is more elastic. Which of the following is NOT a characteristic of a perfectly competitive market? Which of the following is NOT a characteristic of a perfectly competitive market? The products sold by the firms in the market are homogeneous. There are many buyers and sellers in the market. It is difficult for a firm to enter or leave the market. Each firm is a price taker.

In a perfectly competitive market, if P > ATC at the Profit-maximizing level of output,, there will be Question 10 options: entry of new firms into the market. an upward pressure on price. an accounting loss for existing firms. an inward shift in the industry supply curve.

A monopolist can earn economic profits in the long run because Question 13 options: a monopoly makes the good or service better than anyone else. monopolies can legally force people to buy their products and to pay more for them than they are worth. a monopoly is by definition large, and this gives it the ability to make large profits. barriers to entry prevent new firms from entering the industry.

A monopolist engages in price discrimination Question 14 options: by charging the same price to all consumers. by charging a lower price to consumers whose demand is more elastic. by charging a higher price when marginal cost is lower. by charging a higher price to consumers whose demand is more elastic. The products sold by the firms in the market are homogeneous. There are many buyers and sellers in the market. It is difficult for a firm to enter or leave the market. Each firm is a price taker.

In a perfectly competitive market, if P > ATC at the Profit-maximizing level of output,, there will be Question 10 options: entry of new firms into the market. an upward pressure on price. an accounting loss for existing firms. an inward shift in the industry supply curve.

A monopolist can earn economic profits in the long run because Question 13 options: a monopoly makes the good or service better than anyone else. monopolies can legally force people to buy their products and to pay more for them than they are worth. a monopoly is by definition large, and this gives it the ability to make large profits. barriers to entry prevent new firms from entering the industry.

A monopolist engages in price discrimination Question 14 options: by charging the same price to all consumers. by charging a lower price to consumers whose demand is more elastic. by charging a higher price when marginal cost is lower. by charging a higher price to consumers whose demand is more elastic. In a perfectly competitive market, if P > ATC at the Profit-maximizing level of output,, there will be In a perfectly competitive market, if P > ATC at the Profit-maximizing level of output,, there will be entry of new firms into the market. an upward pressure on price. an accounting loss for existing firms. an inward shift in the industry supply curve.

A monopolist can earn economic profits in the long run because Question 13 options: a monopoly makes the good or service better than anyone else. monopolies can legally force people to buy their products and to pay more for them than they are worth. a monopoly is by definition large, and this gives it the ability to make large profits. barriers to entry prevent new firms from entering the industry.

A monopolist engages in price discrimination Question 14 options: by charging the same price to all consumers. by charging a lower price to consumers whose demand is more elastic. by charging a higher price when marginal cost is lower. by charging a higher price to consumers whose demand is more elastic. entry of new firms into the market. an upward pressure on price. an accounting loss for existing firms. an inward shift in the industry supply curve.

A monopolist can earn economic profits in the long run because Question 13 options: a monopoly makes the good or service better than anyone else. monopolies can legally force people to buy their products and to pay more for them than they are worth. a monopoly is by definition large, and this gives it the ability to make large profits. barriers to entry prevent new firms from entering the industry.

A monopolist engages in price discrimination Question 14 options: by charging the same price to all consumers. by charging a lower price to consumers whose demand is more elastic. by charging a higher price when marginal cost is lower. by charging a higher price to consumers whose demand is more elastic. A monopolist can earn economic profits in the long run because A monopolist can earn economic profits in the long run because a monopoly makes the good or service better than anyone else. monopolies can legally force people to buy their products and to pay more for them than they are worth. a monopoly is by definition large, and this gives it the ability to make large profits. barriers to entry prevent new firms from entering the industry.

A monopolist engages in price discrimination Question 14 options: by charging the same price to all consumers. by charging a lower price to consumers whose demand is more elastic. by charging a higher price when marginal cost is lower. by charging a higher price to consumers whose demand is more elastic. a monopoly makes the good or service better than anyone else. monopolies can legally force people to buy their products and to pay more for them than they are worth. a monopoly is by definition large, and this gives it the ability to make large profits. barriers to entry prevent new firms from entering the industry.

A monopolist engages in price discrimination Question 14 options: by charging the same price to all consumers. by charging a lower price to consumers whose demand is more elastic. by charging a higher price when marginal cost is lower. by charging a higher price to consumers whose demand is more elastic. A monopolist engages in price discrimination A monopolist engages in price discrimination by charging the same price to all consumers. by charging a lower price to consumers whose demand is more elastic. by charging a higher price when marginal cost is lower. by charging a higher price to consumers whose demand is more elastic. by charging the same price to all consumers. by charging a lower price to consumers whose demand is more elastic. by charging a higher price when marginal cost is lower. by charging a higher price to consumers whose demand is more elastic. is at its maximum. has a vertical slope. is at its minimum. is zero.


In the long run, the perfectly competitive firm Question 7 options: may produce even if it suffers a loss. does not have a shut down price. earns an economic profit. earns only a normal profit.
Which of the following is NOT a characteristic of a perfectly competitive market? Question 9 options: The products sold by the firms in the market are homogeneous. There are many buyers and sellers in the market. It is difficult for a firm to enter or leave the market. Each firm is a price taker.

In a perfectly competitive market, if P > ATC at the Profit-maximizing level of output,, there will be Question 10 options: entry of new firms into the market. an upward pressure on price. an accounting loss for existing firms. an inward shift in the industry supply curve.

A monopolist can earn economic profits in the long run because Question 13 options: a monopoly makes the good or service better than anyone else. monopolies can legally force people to buy their products and to pay more for them than they are worth. a monopoly is by definition large, and this gives it the ability to make large profits. barriers to entry prevent new firms from entering the industry.

A monopolist engages in price discrimination Question 14 options: by charging the same price to all consumers. by charging a lower price to consumers whose demand is more elastic. by charging a higher price when marginal cost is lower. by charging a higher price to consumers whose demand is more elastic.

Explanation / Answer

question 5

Answer: Lowest point

Reason: When the MC is less than the ATC, each extra unit of output lowers the the ATC.As ATC is the average cost. This means that as long as MC is less than ATC, ATC will go down with each extra unit made. At some point MC rises to the point that it equals ATC and the curves intersect and then MC keeps rising as it is now greater than ATC ATC keeps increasing along with MC so the only intersection point will be when the ATC is at it's minimum.

Question 7

Answer: Earns only normal profit

Reason:Because in a perfect competition firms lower prices to a point where the profits of the firm will just cover the oppurtunity costs which are just normal profits and not economic profits.

Question 9

Answer:It is difficult for a firm to enter or leave the market.

Reason:In a perfect competition there are no barriers whatsoever as the resources required to enter the market are open unlike a monopoly and leaving a market is easier as most firms do not make economic profits and a single firm leaving the industry doesn't have any effects on the industry itself as there are enough number of existing firms.

Question 10

Answer: entry of new firms into the market

Reason: As P>ATC its obvious that the market has good potential to make profits which is a great incentive to enter the market and set up a firm so new firms enter the market.

Question 13

Answer:barriers to entry prevent new firms from entering the industry.

Reason: Monopoly exists when a single firm has a distinct advantage over others which essentially blocks other firms from entering the market there by making the firm free from competition as the firm is the sole seller in the market it is capable of making economic profits.

Question 14

Answer:by charging a lower price to consumers whose demand is more elastic.

Reason: When a customer's demand is more elastic lowering the price entices the consumer in buying more of the product there by increasing the firm's revenue when the customer's demand is inelastic then the firm chooses to price at the same existing price there by discriminating.

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