For a firm in a perfectly competitive market, its marginal revenue a) is constant with respect to the quantity produced. b) increases with the quantity produced. c) decreases with the quantity produced. d) is inversely proportional to the quantity produced.   2. Which of the following is a characteristic of a monopolist firm but not of a perfectly competitive firm? a) A monopolist firm maximizes profit by producing at a level such that MR = ATC. b) A monopolist firm is a price taker. c) The demand facing a monopolist firm is downward sloping. d) A monopolist firm does not have market power.

Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter9: Monopoly
Section: Chapter Questions
Problem 19SQ
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1. For a firm in a perfectly competitive market, its marginal revenue

a) is constant with respect to the quantity produced.
b) increases with the quantity produced.
c) decreases with the quantity produced.
d) is inversely proportional to the quantity produced.
 

2. Which of the following is a characteristic of a monopolist firm but not of a perfectly competitive firm?

a) A monopolist firm maximizes profit by producing at a level such that MR = ATC.

b) A monopolist firm is a price taker.
c) The demand facing a monopolist firm is downward sloping.
d) A monopolist firm does not have market power.

 
 
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