second part managerial review

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Use the following information to answer questions 12-14.

In a perfectly competitive industry, the market demand is given by Qd=140,000-10,000P; the market demand is given by Qs=80,000+5,000P. The minimum point on the long-run AC curve is $4 and occurs at a quantity of 1000. Assume that each firm is identical

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    A pure monopoly

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    A monopoly earns positive economic profits in the long run due to

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    3. If a natural monopoly is broken up into two smaller firms,

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    4. Which of the following is most likely to result in a natural monopoly?

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    5. Compared to a perfectly competitive industry, a monopolist will generally produce

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    6. Which of the following is true for a profit-maximizing competitive firm in the long run but untrue for a monopolist?

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    7. The most distinguishing characteristic of monopolistic competition is

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    8. In the long run, firms under monopolistic competition

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    Demand is given by QD = 100 – P and supply by QS = .5P – 20. Equilibrium price and output under perfect competition are

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    2. In order to maximize profits, a perfectly competitive firm continues producing until

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    3. If the long-run market supply under perfect competition is upward sloping, the industry

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    4. If a perfectly competitive firm raises its price for a good,

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    5. The equilibrium market price and quantity are

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    6. The equilibrium is

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    7. Assuming that all firms are identical, how many firms are in the industry?

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    8. Suppose demand increases and the new demand is given by Qd=150,000-5000P. What will be the new equilibrium output for each firm?

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    If demand is inelelastic then

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    A firm concludes that it currently faces a demand curve with an eleasticity of -8. therefore the optimal markup expressed as a percent is

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    Along a linear demand curve total revenue is maximized when

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    A firms total cost function is given by C=100+10Q+2q^2 at q=10

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    At its current output level, a firms marginal profit is positive. Therefore it should

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    A firms average variable cost

  23. 23

    The cost function is C=1500 +.1Q+.005Q^2 average costs are minimized at Q=

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    The cost function is C=1500 +.1Q+.005Q^2. The average variable cost function is

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