Category: Profit Maximizing Under Perfect Competition And Monopoly

A. marginal rate of factor substitution
B. marginal rate of substitution
C. law of diminishing marginal returns.
D. marginal rate of production

A. a fixed cost monopoly
B. a natural monopoly
C. a government franchise monopoly
D. a economies of scale monopoly

A. The market for copper, where there are very few producers and the product is standardized.
B. The fast-food market where there are a large number of producers but the demand for fast food is inelastic
C. The coffee market where the product is standardized and there are a large number of coffee growers.
D. The automobile industry, where there are few producers but there is great product differentiation.

A. perfect competition
B. monopolistic competition
C. oligopoly
D. monopoly

A. in monopolistic competition entry into the industry is blocked
B. in monopolistic competition there are relatively few barriers to entry.
C. in monopolistic competition, firms can differentiate their products
D. in perfect competition firms can differentiate their products

A. all firms must make economic profits.
B. there are no fixed factors of production
C. a firm can vary all inputs, but it cannot change the mix of inputs it uses.
D. a firm can shut down, but it cannot exit the industry

A. total fixed cost only.
B. total variable costs only.
C. both total variable costs and total costs.
D. total costs only

A. a firm’s ability to monopolies a market completely.
B. a firm’s ability to raise price without losing all demand for its product
C. a firm’s ability to sell any amount of output it desires at the market-determined price.
D. a firm’s ability to charge any price it likes

A. decrease; decrease
B. increase; decrease
C. decrease; increase
D. increase; increase

A. £35
B. £15
C. £30
D. £60