Complete the following table. $\begin{array}{|c|c|c|c|c} \hline\text { Energy Drinks } && \text { Total } & \text { Average }\\ \text { Consumed per } & \text { Price }(P) & \text { Revenue } & \text { Revenue } & \text { Marginal }\\ \text { Week } & \text { (dollars) } & (T R) & (A R) & \text { Revenue }(M R)\\ \hline 0 & 6.00 & & & \\ \hline 1 & 5.50 & & & \\ \hline 2 & 5.00 & & & \\ \hline 3 & 4.50 & & & \\ \hline 4 & 4.00 & & & \\ \hline 5 & 3.50 & & & \\ \hline 6 & 3.00 & & & \\ \hline 7 & 2.50 & & & \\ \hline 8 & 2.00 & & & \\ \hline \end{array}$ __________________________________________________________________________________________________________________________________________________________________________________________

\[\begin{array} { | c | c | c | c | c |

Table 9.4 $\begin{array}{|c|c|c|c|c|c|c|} \hline \begin{array}{c} \text { Quantity } \\ \text { Sold } \end{array} & \begin{array}{c} \text { Price } \\ \text { (dollars )} \end{array} & \begin{array}{c} \text { Total } \\ \text { Revenue } \\ \text { (dollars) } \end{array} & \begin{array}{c} \text { Marginal } \\ \text { Revenue } \end{array} & \begin{array}{c} \text {Total}\\ \text { Cost } \\ \text { (dollars) } \end{array} & \begin{array}{c} \text { Marginal } \\ \text { Cost } \end{array} & \begin{array}{c} \text { Profit } \\ \text { (dollars) } \end{array} \\ \hline 0 & 10 & 0 & \cdots & 2 & \cdots & -2 \\ \hline 1 & 9 & 9 & & 8 & & \\ \hline 2 & 8 & 16 & & 13 & & \\ \hline 3 & 7 & 21 & & 17 & & \\ \hline 4 & 6 & 24 & & 20 & & \\ \hline 5 & 5 & 25 & & 22 & & \\ \hline 6 & 4 & 24 & & 26 & & \\ \hline \end{array}$ Table 9.4 lists estimated revenues and costs (per week) for plastic vials (100 vials per box) for the Victoria Biological Supplies Company. Victoria sells plastic vials to university and private research laboratories. -Refer to Table 9.4.Victoria's profit-maximising quantity sold (Q)and price (P)are _______.

A) Q = 3; P = $7 B) Q = 4; P = $6 C) Q = 5; P = $5 D) Q = 6; P = $4 A) Q = 3; P = $7 B) Q = 4; P = $6 C) Q = 5; P = $5 D) Q = 6; P = $4

Exam 9: Monopolistic Competition and Oligopoly

Figure 9.15 Figure 9.15 illustrates a monopolistically competitive firm. -Refer to Figure 9.15.Which of the following statements describes the firm depicted in the diagram?

(Multiple Choice)

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Question 81

In an oligopoly,minimum efficient scale is likely to occur at a level of output that is a large fraction of industry sales.

(True/False)

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Question 82

Explain why member firms of a cartel like OPEC have incentives to agree to a low cartel production level and then produce more than its quota. __________________________________________________________________________________________________________________________________________________________________________________________

(Essay)

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Question 83

A monopolistically competitive firm should lower its price if its marginal revenue exceeds its marginal cost.

(True/False)

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Question 84

Which of the following is not an example of an oligopolistic market?

(Multiple Choice)

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Question 85

If marginal revenue is negative,then the revenue lost from receiving a lower price on all the units that could have been sold at the original price is smaller than the additional revenue from selling 1 more unit of the good.

(True/False)

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Question 86

If price exceeds average variable cost but is less than average total cost,a firm _____.

(Multiple Choice)

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Question 87

Figure 9.14 -Refer to Figure 9.14.If the diagram represents a typical firm in the market,what is likely to happen in the long run?

(Multiple Choice)

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Question 88

Which of the following is not a characteristic of monopolistic competition?

(Multiple Choice)

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Question 89

Complete the following table. Energy Drinks Total Average Consumed per Price (P) Revenue Revenue Marginal Week (dollars) (TR) (AR) Revenue (MR) 0 6.00 1 5.50 2 5.00 3 4.50 4 4.00 5 3.50 6 3.00 7 2.50 8 2.00 __________________________________________________________________________________________________________________________________________________________________________________________

(Essay)

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Question 90

Economies of scale can lead to an oligopolistic market structure because ________.

(Multiple Choice)

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Question 91

Why is a patent a government-imposed entry barrier?

(Multiple Choice)

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Question 92

What is a set of actions that a firm takes to achieve a goal?

(Multiple Choice)

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Question 93

How does an oligopolist differ from a perfect competitor?

(Multiple Choice)

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Question 94

If firms in a monopolistically competitive market are earning economic profits,which of the following scenarios best reflects the change a representative firm experiences as the market adjusts to its long-run equilibrium?

(Multiple Choice)

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Question 95

Which of the following is not an example of a government-imposed entry barrier?

(Multiple Choice)

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Question 96

Table 9.4 Quantity Sold Price (dollars ) Total Revenue (dollars) Marginal Revenue Total Cost (dollars) Marginal Cost Profit (dollars) 0 10 0 \@cdots 2 \@cdots -2 1 9 9 8 2 8 16 13 3 7 21 17 4 6 24 20 5 5 25 22 6 4 24 26 Table 9.4 lists estimated revenues and costs (per week) for plastic vials (100 vials per box) for the Victoria Biological Supplies Company. Victoria sells plastic vials to university and private research laboratories. -Refer to Table 9.4.Victoria's profit-maximising quantity sold (Q)and price (P)are _______.

(Multiple Choice)

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(85)

Question 97

If firms in a monopolistically competitive industry are making profits in the short run,________.

(Multiple Choice)

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Question 98

Which of the following is not a reason why government officials are willing to impose entry barriers?

(Multiple Choice)

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Question 99

When a monopolistically competitive firm cuts its price to increase its sales,it experiences a loss in revenue due to the income effect and a gain in revenue due to the substitution effect.

(True/False)

4.7/5

(90)

Question 100

Figure 9.15 Figure 9.15 illustrates a monopolistically competitive firm. -Refer to Figure 9.15.Which of the following statements describes the firm depicted in the diagram?

In an oligopoly,minimum efficient scale is likely to occur at a level of output that is a large fraction of industry sales.

A monopolistically competitive firm should lower its price if its marginal revenue exceeds its marginal cost.

Which of the following is not an example of an oligopolistic market?

If marginal revenue is negative,then the revenue lost from receiving a lower price on all the units that could have been sold at the original price is smaller than the additional revenue from selling 1 more unit of the good.

If price exceeds average variable cost but is less than average total cost,a firm _____.

Figure 9.14 -Refer to Figure 9.14.If the diagram represents a typical firm in the market,what is likely to happen in the long run?

Which of the following is not a characteristic of monopolistic competition?

Economies of scale can lead to an oligopolistic market structure because ________.

Why is a patent a government-imposed entry barrier?

What is a set of actions that a firm takes to achieve a goal?

How does an oligopolist differ from a perfect competitor?

If firms in a monopolistically competitive market are earning economic profits,which of the following scenarios best reflects the change a representative firm experiences as the market adjusts to its long-run equilibrium?

Which of the following is not an example of a government-imposed entry barrier?

If firms in a monopolistically competitive industry are making profits in the short run,________.

Which of the following is not a reason why government officials are willing to impose entry barriers?

When a monopolistically competitive firm cuts its price to increase its sales,it experiences a loss in revenue due to the income effect and a gain in revenue due to the substitution effect.

Economics: Foundations and Models

Choices and Trade-Offs in the Market

Where Prices Come From: the Interaction of Demand and Supply

Elasticity: The Responsiveness of Demand and Supply

Economic Efficiency,government Price Setting and Taxes

Technology,production and Costs

Firms in Perfectly Competitive Markets

Monopoly Markets

The Markets for Labour and Other Factors of Production

Government Intervention in the Market

Social Policy and Inequality

Gdp: Measuring Total Production, income and Economic Growth

Unemployment and Inflation

Aggregate Demand and Aggregate Supply Analysis

Money,banks and the Reserve Bank of Australia

Monetary Policy

Fiscal Policy

Comparative Advantage and the Gains From International Trade

Macroeconomics in an Open Economy

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