ll alfa ?8:19 am1. Which of the following remains constantas output increases? *а. TFCb. TVCс. ТСO d. All of the above2. If a monopolist's marginal revenue is $45a unit and its marginal cost is $45, then:a. To maximize profit the firm shoulddecrease output.b. To maximize profit the firm shouldcontinue to produce the output it isproducing.c. To maximize profit the firm shouldincrease output.d. Not enough information is given to saywhat the firm should do to maximize profit.3. Which of the following is a characteristiccharec by a p erfectly cemnetitivo firm and a .ll alfa ?8:01 am1. For a natural monopoly, the marginal costof producing an additional unit of itsproduct is relatively small. *TrueFalse2. Since a firm in a perfectly competitivemarket is a price taker, the demand for thisfirm's product is essentially a horizontal line.TrueFalse3. As marginal cost rises, average variablecost necessarily rises.TrueFalse

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1. Which of the following remains constant as output increases? * a. TFC ОБ тус b. TVC С. ТС O d. All of the above

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter15: Monopoly

Section: Chapter Questions

Problem 1CQQ

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Question

ll alfa ?
8:19 am
1. Which of the following remains constant
as output increases? *
а. TFC
b. TVC
с. ТС
O d. All of the above
2. If a monopolist's marginal revenue is $45
a unit and its marginal cost is $45, then:
a. To maximize profit the firm should
decrease output.
b. To maximize profit the firm should
continue to produce the output it is
producing.
c. To maximize profit the firm should
increase output.
d. Not enough information is given to say
what the firm should do to maximize profit.
3. Which of the following is a characteristic
charec by a p erfectly cemnetitivo firm and a

.ll alfa ?
8:01 am
1. For a natural monopoly, the marginal cost
of producing an additional unit of its
product is relatively small. *
True
False
2. Since a firm in a perfectly competitive
market is a price taker, the demand for this
firm's product is essentially a horizontal line.
True
False
3. As marginal cost rises, average variable
cost necessarily rises.
True
False

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