(A) becomes a decision variable for the firm.
(B) is determined by the actions of other firms in the industry.
(C) no longer influences the amount demanded of the firm’s product.
(D) is guaranteed to be above a firm’s average cost.
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When __ substitutes exist, a monopolist has __ power to raise price.
(A) more; more
(B) fewer; less
(C) no; infinite
(D) more; less
Market power is?
(A) a firm’s ability to charge any price it likes.
(B) a firm’s ability to raise price without losing all demand for its product.
(C) a firm’s ability to sell any amount of output it desires at the market-determined price.
(D) a firm’s ability to monopolise a market completely.
If you were running a firm in a perfectly competitive industry you would be spending your time making decisions on?
(A) how much of each input to use.
(B) how much to spend on advertising.
(C) what price to charge.
(D) the design of the product.
A firm will shut down in the short run if?
(A) total variable costs exceed total revenues.
(B) average cost exceeds price.
(C) total costs exceed total revenues.
(D) it is suffering a loss.
A firm’s choice of profit-maximising output can be shown on a diagram using?
(A) the AC and AR curves.
(B) the MR and AR curves.
(C) the AC and MC curves.
(D) the MR and MC curves.
The amount of profit a firm makes can be shown on a diagram using?
(A) the AC and AR curves.
(B) the MR and AR curves.
(C) the AC and MC curves.
(D) the MR and MC curves.
16 Marginal revenue is?
(A) the additional profit the firm earns when it sells an additional unit of output.
(B) the added revenue that a firm takes in when it increases output by one additional
unit.
(C) the difference between total revenue and total costs.
(D) the ratio of total revenue to quantity.