6. The demand curve for the product of a firm in a competitive market is and the

Question

6. The demand curve for the product of a firm in a competitive market is and the demand curve for the product of a monopolist is a. horizontal, downward-sloping b. horizontal, horizontal c. downward-sloping upward-sloping d. downward-sloping, horizontal e. upward-sloping, downward-sloping 7. Because the demand curve for a monopolist is downward sloping: a. there is no limit on the monopolist's ability to make a profit. b. the monopolist can sell its product at any price it wants. c. the monopolist can sell as many units of its product as it wants. d. the monopolist is a price-taker. e. the monopolist has many price-output combinations. 8. At low price levels, demand tends to be and the price effect is relative to the output effect a. inelastic, small b. inelastie; large c. elastic, small d. elastic, large e. elastie insignificant Refer to the accompanying figure to answer the next five questions. Price 9. The profit-maximizing price and quantity are: a. S25 and 100, respectively b. S25 and 150, respectively c. S13 and 100, respectively d. S10 and 100, respectively e. $10 and 150, respectively 10. When this firm is producing at the profit-maximizing price and quantity, its total revenue 18: a. $1,000

Explanation / Answer

Q6

Answer

Option a

the entry in the perfectly competitive market is free but in monopoly, it is restricted to the demand curve changes in both

Q7

Option e

the monopolist have many combination of price and quantity it can charges

Q8

Option a

the demand is inelastic at lower prices so that the demand is less sensitive to changes in the price

Q9

the firm produces at MR=MC

where

Q=100 units

and the price is found from demand curve which is $25

option a

Q10

Answer

TR=P*Q=25*100=2500

option c

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