Question

Please answer the following five questions. Thanks

Question 8

Given the data provided in the table below, what will the amount of profit be for production at quantity (Q) level 6?

Q	P	TC	TR	MR	MC	Profit
0	$12	$9
1	$12	$10
2	$12	$12
3	$12	$15
4	$12	$19
5	$12	$24
6	$12	$30
7	$12	$45

Group of answer choices

$36

$1

$42

$2

Question 11

Suppose that OPEC members produce and export oil and operate as oligopoly firms. A given OPEC member seeking to act individually and gain profits would most likely try _____ levels of oil output and _____ prices.

Group of answer choices

expanding; cutting

reducing; raising

expanding; raising

reducing; cutting

Question 13

Comparing a monopoly firm and a monopolistic competitor, the price elasticity of demand will be

Group of answer choices

equal for both.

higher for the monopolistic competitor.

higher for the monopoly firm.

indeterminate between the two.

Question 16

If a firm is a monopolistic competitor, then the firm faces

Group of answer choices

many competitors selling slightly differentiated products.

many competitors selling the exact same product.

no competitors, and is the only seller of its product.

only a handful of other competitors due to numerous barriers to entry.

Question 18

Which of the following is a command-and-control based pollution control policy?

Group of answer choices

a state emissions tax on coal power plants.

a subsidy provided by the city for keeping land undeveloped.

a county selling permits for toxic waste dumping.

a federal government requirement that all vehicle fleets average a set level of emissions by 2030.

Answer 1

Ans.8-(C)

Profit = TR-TC = 6*12-30 = 42

Ans.11- (B)

OPEC is a cartel and firms in a cartel try to reduce output and increase price in order to maximize their profits.

Ans.13- (B)

Price elasticity of demand is higher for Monopolistically competitive firm because it has a large number of substitutes and we know the more the substitutes for a good, the more elastic its demand will be.

Ans.16- (A)

There are many competitors in a monopolistic competitive industry selling slightly differentiated products which provides these firms a little market power.

Ans.18- (C)