Q9
For a monopolist, changes in demand will lead to changes in …
1.output, with no change in price.
2.price, with no change in output.
3.All of the above.
4.both price and quantity.
Q10
Because of the relationship between a perfectly competitive firm’s demand curve and its marginal revenue curve, the profit maximisation condition of the firm can be written as …
1.P = MR
2.P = AC
3.AR = MR
4.P = MC
Q11
The monopolist has no supply curve because …
1.the quantity supplied at any particular price depends on the monopolist’s demand curve.
2.the monopolist’s marginal cost curve changes considerably over time.
3.the relationship between price and quantity depends on both marginal cost and average costs.
4.there is a single seller in the market.
Q12
Lesedi is a producer in a monopoly industry. Her demand curve, total revenue curve, marginal revenue curve and total cost curve are given as follows:
Q = 160 – 4P
TR = 40Q – 0.25(Q x Q)
MR = 40 – 0.5Q
TC = 4Q
MC = 4
How much output will Lesedi produce?
1.72
2.0
3.56
4.22