ECON 705: Module 5 /Complete Questions And Answers

ECON 705: Module 5 /Complete Questions And
Answers
Quiz :Characteristics of a Monopoly - Answer :- only 1 firm
- demand curve is downward sloping
- only perform in the elastic section above the midpoint
- price makers
- Can discriminate

Quiz :Price Makers - Answer :sellers that set the price of a good

Quiz :Causes of a Monopoly - Answer :- barriers to enter
- single ownership of a resource
- fixed costs

Quiz :Benefits of a Monopoly - Answer :- no supply curves
- stability of prices bc there's no competition
- ability to scale up
- Huge budgets for R&D

Quiz :Disadvantages of a Monopoly - Answer :- Inferior products
- increased prices bc firm is a price maker

Quiz :Dead Weight Loss - Answer :The lost net benefit to society caused by a
movement away from the competitive market equilibrium

Quiz :MR = - Answer :change in TR/change in quantity

Quiz :MC = - Answer :change in TC/change in Q

Quiz :Profit = - Answer :total revenue - total cost

Quiz :TR = - Answer :Price x Quantity

Quiz :To find profit we need to know... - Answer :the fixed cost

Quiz :economies of scale - Answer :the property whereby long-run average
total cost falls as the quantity of output increases