A firm whose average total cost continually declines at least to the quantity that could supply the entire market is known as a ?
A. natural monopoly
B. perfect competitor
C. government monopoly
D. regulated monopoly
Which of the following best defines price discrimination ?
A. charging different prices on the basis of race
B. charging different prices for goods with different costs of production
C. charging different prices based on cost-of-service differences
D. selling a certain product of given quality and cost per unit at different prices to different buyers
Compared to the case of perfect competition, a monopolist is more likely to ?
A. charge a higher price
B. produce a lower quantity of the product
C. make a greater amount of economic profit
D. all of the above
In pure monopoly, what is the relation between the price and the marginal revenue ?
A. the price is greater than the marginal revenue
B. the price is less than the marginal revenue
C. there is no relation
D. they are equal
If a marginal revenue exceeds marginal cost, a monopolists should?
A. increase should
B. decrease output
C. keep output the same because profits are maximized when marginal revenue exceeds marginal cost
D. raise the price
If regulators break up a natural monopoly into many smaller firms, the cost of production ?
A. will rise
B. will fall
C. will remain the same
D. could either rise or fall depending on the elasticity of the monopolist’s supply curve