CoronaQuiz 4

The figure shows a perfectly competitive firm that faces demand curve d, has the cost curves shown, and maximizes profit. If the market price is $3.00, the firm will produce ________ units of output per day.

• 100

• 250

• 300

• 400

The figure shows the demand, marginal revenue, marginal cost, and average total cost curves for Figglenuts-R-Us, a monopolist in the figglenut market. Figglenuts-R-Us will sell ________ figglenuts and set a price of ________ to maximize profits.

• 70; $30

• 70; $65

• 100; $50

• 120; $40

The figure shows a perfectly competitive firm that faces demand curve d, has the cost curves shown, and maximizes profit. Given the market price, the firm's total revenue per day is

• 475

• 600

• 900

• 1200

The figure shows a perfectly competitive firm that faces demand curve d, has the cost curves shown, and maximizes profit. The firm's total cost per day is:

• 475

• 600

• 300

• 900

The figure shows a perfectly competitive firm that faces demand curve d, has the cost curves shown, and maximizes profit. If the firm faces a market price of $3.00, its total profit per day is:

• 0

• 200

• 275

• 300

The figure shows the demand, marginal revenue, marginal cost, and average total cost curves for Figglenuts-R-Us, a monopolist in the figglenut market. If the government wanted to regulate Figglenuts-R-Us such that the entire deadweight loss would be eliminated, it would impose a price ceiling of ________ in the market.

• $30

• $40

• $50

• $60

The figure shows the demand, marginal revenue, marginal cost, and average total cost curves for Figglenuts-R-Us, a monopolist in the figglenut market. If the government wanted to regulate Figglenuts-R-Us such that it would minimize the deadweight loss while allowing the firm to break even, it would impose a price ceiling of ________ in the market.

• $30

• $40

• $50

• $60

The figure shows the demand, marginal revenue, marginal cost, and average total cost curves for Figglenuts-R-Us, a monopolist in the figglenut market. If the government regulated the figglenut market by setting a price ceiling of $40, Figglenuts-R-Us might:

• produce 60 figglenuts to maximize profit.

• produce 120 figglenuts to maximize profit.

• exit the market in the short run.

• produce 120 figglenuts to maximize short-run profit and might exit the market in the long run.

The market for lemonade is currently in equilibrium and the price of lemons rises. How will this affect the lemonade market?

• Supply will increase, decreasing the price and increasing the quantity.

• Demand will decrease, increasing the price and decreasing the quantity.

• Demand will decrease, decreasing the price and decreasing the quantity.

• Supply will decrease, increasing the price and decreasing the quantity.

Oligopolies are industries:

• dominated by one seller who shares market power equally with all other sellers.

• made up of few firms, each with some market power and therefore aware of their interdependence with the other firms.

• composed of many buyer and sellers, all of whom are price-takers.

• that are the same as monopolistically competitive industries except that they sell a standardized product.