A market structure in which one firm makes up the entire market is: A. a monopol

Question

A market structure in which one firm makes up the entire market is: A. a monopoly. B. perfect competition. C. an oligopoly. D. monopolistic competition. 12. A monopoly firm is different from a competitive firm in that: A. there are many substitutes for a monopolist's product while there are no substitutes for a competitive firm's product. B. a monopolist's demand curve is perfectly inelastic while a competitive firm's demand curve is perfectly elastic. C. a monopolist can influence market price while a competitive firm cannot. D. a competitive firm has a U-shaped average cost curve while a monopolist does not. 13. The demand curve for a monopolist differs from the demand curve faced by a competitive firm bccause the demand curve for: A. a competitive firm lies above its marginal revenue curve. B. a competitive firm is inelastic. C. a monopolist is the market demand curve. D. a monopolist lies below its marginal revenue curve. 14. 21. Marginal revenue is not equal to price for a monopolist because: A. the monopolist's demand curve is betow its marginal revenue curve. B. total revenue increases as output increases. C. the monopolist sets price equal to marginal cost. D. the monopolist must lower the price of all units in order to sell more. 39. Refer to the graph above. The firm's profit-maximizing price is: A. e. B. f. C. g. D. h. 40. Refer to the graph above. If the firm produces at the profit maximizing level of output, it will: A. earn just normal profits, i.e., zero economic profits. B. earn economic profits. C. incur a loss. D. make enough to cover its variable costs, but not its fixed costs.

Explanation / Answer

11) monopoly is a market where there only one seller that is only 1 firm selling one particular product.(a)

12)c. Since monopolist is the sole seller in the market so it is a price maker ie can influence price unlike perfect competition.

13)c Since monopolist is the sole seller that is the reason the demand curve its facing is the market demand curve.

14.Since monopolist is the sole seller so it charges a very high price compared to other types of market where P>MR as the demand curve is downward sloping.thus, Demand curve is below the MR curve(a)

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