Question

1. The supply curve of a perfectly competitive firm is ______ a. The Marginal cost curve...

1. The supply curve of a perfectly competitive firm is ______

a. The Marginal cost curve above the average variable cost curve

b. The Marginal cost curve

c. The Variable cost curve

d. The Marginal cost curve below the variable cost curve

.

2. A shopkeeper is increasing the price of a product after seeing my dress/ car is an example of __________________.

a. None of the options are true

b. Monopoly market with price discrimination

c. Perfectly competitive market

d. It is not possible to increase the price like that

.

Question 03: Do you think Monopoly market is necessarily Bad for the society? Justify your answer

Homework Answers

Answer #1

Q1 Answer is A.

Supply curve of firm is the portion of the marginal cost curve which is above the average variable cost curve. If price is below AVC than firm will not supply.

Q2 Answer is B.

Price discrimination is the when monopolist charges different price to different consumers. Consumer who can pay more is charged more and who can pay less is charged less.

Q3 Monopoly creates dead weight loss so they does not maximise the total surplus. So monopolies are not good but if target of the monopolist is social welfare than monopoly could do better. Profit maximising monopoly is not good.

#Please rate positively...thank you

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