Category: Profit Maximizing Under Perfect Competition And Monopoly

A. more; more
B. fewer; less
C. more; less
D. no; infinite

A. the MR and MC curves
B. the AC and AR curves
C. the AC and MC curves
D. the MR and AR curves

A. by producing differentiated products
B. because of barriers to exit from the industry
C. by virtue of size alone
D. because of barriers to entry into the industry

A. there are many EU and government health controls on cosmetic products
B. there are a very large number of firms in the industry
C. firms spend a large amount of money on advertising
D. profit margins are very high for both producers and retailers

A. in response to a price increase is less elastic than the elasticity of demand in response to a price decrease
B. is perfectly elastic if price increases and perfectly inelastic if price decreases
C. is constant regardless of whether price increase of decrease.
D. in response to a price increases is more elastic than the elasticity of demand in response to a price decrease

A. it assumes that firms believe that their rivals will not respond to any price change they initiate
B. it fails to explain how a firm arrived at its price and output decision initially
C. The model cannot be tested empirically.
D. Real-world pricing strategies are more simple than those assumed in this model

A. perfectly competitive firms
B. a cartel
C. a monopoly
D. monopolistically competitive firms.

A. entry to it and exit from it are both costless
B. entry to it and exit from it are both costly
C. entry to it costless, but exit from it is costless
D. entry to it is costly, but exit from it is costless

A. monopolistically competitive firms
B. a cartel
C. perfectly competitive firms
D. a monopoly.

A. the additional profit the firms earns when it sells an additional unit of output
B. the difference between total revenue and total cost
C. The ratio of total revenue to quantity.
D. the added revenue that a firm takes in when it increases output by one additional unit.