Question

1.

Monopolies need some type of barrier to entry to keep potential competitors away.

Group of answer choices

True

False

2.

For a monopoly, the marginal revenue from selling an extra unit of output is less than the price of that unit.

Group of answer choices

True

False

3.

For a monopolist, profit is maximized at the level of output where MR = MC.

Group of answer choices

True

False

4.

A multi-plant monopolist produces more than if each of its plants were a separate firm in a competitive market.

Group of answer choices

True

False

5.

Monopolists can charge any price and sell any amount of output they want because no competition exists.

Group of answer choices

True

False

Answer 1

1. TRUE because Monopolies need some type of barrier to entry to keep potential competitors away.

2. TRUE For a monopoly, the marginal revenue from selling an extra unit of output is less than the price of that unit, because MR curve is downward sloping for monopoly.

3. TRUE because Monopolist profit maximizing condition is MR=MC.

4. FALSE because a multi-plant monopolist produces less than if each of its plants were a separate firm in a competitive market.

5. FALSE because monopolist cannot charge any price and sell any amount of output .