C7 : SET 1 - DETERMINANT OF OUTPUT LEVEL AND MARKET PRICE STRUCTURE

In long-run equilibrium, the monopolistic competition market firm may generate _________________ .

• operation shutdown.

• super normal profit.

• subnormal profit.

• normal profit.

Which the following criteria is a unique characteristics of oligopoly market ?

• Price competitions.

• Price discrimination.

• Mutual interdependence.

• Perfect homogeneous product.

A perfectly competitive market can maximize profit when output is produced at a where ________________.

• marginal revenue is equal to average profit.

• marginal revenue is equal to marginal cost.

• marginal revenue is equal to average variable cost.

• marginal revenue is equal to average revenue.

Average revenue for a monopoly is _______________ .

• less than price.

• equal to marginal revenue.

• less than marginal revenue.

• greater than marginal revenue.

Assume that a perfect competitive firm increases the production from 10 units to 11 units. If the market price is RM20 per unit, total revenue for 11 units is ________________?

• RM20

• RM200

• RM210

• RM220

According to the kinked-demand curve model, the oligopoly firm will produce output when __________________.

• average cost is at its minimum.

• average revenue equals marginal cost.

• marginal revenue equals marginal cost.

• the demand curve intersects with average cost curve.

Monopolistic competition market means _______________ producing ____________ goods.

• few firms ; standardized

• few firms ; differentiated

• many firms ; standardized

• many firms ; differentiated

In the long run equilibrium, the monopoly firm may generate _________.

• operational shut down.

• supernormal profit.

• subnormal profit.

• normal profit.

A firm operating in a perfect competition market will shut down when price is below the minimum of a ___________________.

• marginal cost curve.

• average total cost curve.

• average fixed cost curve.

• average variable cost curve.

A monopoly market will maximize profit in the short-run when marginal cost equals to _______________.

• total revenue.

• average total cost.

• marginal revenue.

• average variable cost.