Question

30. True or false? When a monopolist increases the quantity that it sells, all else equal, total revenue increases, which is called the output effect.

33. Stewart is a lobsterman. His traps are

A. Private goods and the lobster he catches are common resources.

B. Private goods and the lobster he catches are public goods.

C. Rival in consumption and the lobster he catches are not rival in consumption.

D. Not Rival in consumption and the lobster he catches are not rival in consumption.

39. Because each oligopolist cares about its own profit rather than the collective profit of all the oligopolists together,

A. They are unable to maintain the same degree of monopoly power enjoyed by a monopolist.

B. Each firm’s profit always ends up being zero

C. Society is worse off as a result

D. Both a and c are correct

Answer 1

30. TRUE when monopolist increases the quantity that it sells , total revenue increases , which is called output effect.

33. Stewart traps are private goods and the lobster he catches are common resources. Hence, option(A) is correct.

39. Because each oligopolist cares about its own profit rather than the collective profit of all the oligopolists together,they are unable to maintain the same degree of monopoly power enjoyed by a monopolist. Hence, option(A) is correct.