AP Microeconomics

The demand curve a monopolistically competitive firm faces is

As Monopolist increase Q, its TR decreases then its TR begins to increase from leveled output

The pure monopolist produces a product for which there are no close substitutes.

The weaker the barriers to entry into an industry, the more competition there will be.

A purely competitive firm is a price taker, but a monopolist is a price maker

The demand curve for the pure monopolist is

Monopolists may create an entry barrier by price cuting or increased advertisement of a product

Game theory analysis of oligopolist behavior argues oligopolists wont find benefit in collusion

A purely competitive firm is more likely to be affected by X-inefficiency than is a monopolist

In pure monopoly, there are strong barriers to entry.

A barrier to entry that significantly contributes to the establishment of a monopoly would be

Short run, firms that are monopolistically competitive may earn economic profits or losses

Monopolistic competitors have no control over the price of their products

A monopolist will charge the highest price it can get

Sucesful product improvement by 1 firm has little/no effect on other firms in monopolistic comp

Price discrimination occurs when a given item is sold at more than one price

oligopolies are allocatively/productively efficient compared with the standard set in pure comp

Which of these would be most characteristic of oligopoly

Secret price concessions and other forms of cheating will strengthen collusion

A fair return price for a regulated utility would have price set to equal average total cost

Resources are misallocated by monopoly because price is not equal to marginal cost

In the short run, a typical monopolistically competitive firm will earn

The products produced in a oligopolistic industry may be either homogeneous or differentiated

A monopolist seeks maximum total profits, not maximum unit profits.

Pure monopoly guarantees economic profits

Which will tend to increase the inefficiencies of a monopoly producer

The supply curve for a monopolist is the upsloping portion of the MC curve that lies above AVC

One of the economic effects of monopoly is less income inequality

Many Economists think that relative to pure competition, oligopoly is

Which would be most characteristic of monopolistic competition

A monopolist prefers setting price in elastic segment over the inelastic segment

The long-run equilibrium position in monopolistic competition would be where P is equal to MC

A monopolist can increase the sales of its product if it charges a lower price.

At which combination of price and MR is the price elasticity of demand lass than 1

The supply curve for a pure monopolist

Entry is relatively easy In pure comp, but there are significant barriers in monopolistic comp