ECON 201 - FINAL EXAM (JMU) QUESTIONS AND ANSWERS, GRADED A+/ VERIFIED.

ECON 201 - FINAL EXAM (JMU) QUESTIONS AND ANSWERS, GRADED A+/ VERIFIED. 4 ways government can react to monopolies - -1. Making monopolized industries more competitive 2. Regulating the behavior of monopolies 3. Turning some private monopolies into public enterprises 4. NOTHING a firm should do what when their P < ATC - -exit a firm should do what when their P < AVC - -shut down a firm should do what when their P > ATC - -enter a firm should do what when their TR < TC - -exit a firm should do what when their TR > VC - -shut down absolute advantage - -the ability to produce a good using fewer inputs than another producer accounting profit - -total revenue - total explicit costs average fixed cost - -fixed cost divided by the quantity of output average revenue - -total revenue divided by the quantity sold average total cost equation - -Total Cost / Quantity average variable cost - -variable cost divided by the quantity of output barriers to entry - -1. monopoly resources 2. government regulation 3. production process cartel - -a group of firms acting in unison characteristics of monopolistic competition - -1. Fr