Question Part 1 short answers: just a few lines for each

05 Jun Question Part 1 short answers: just a few lines for each

Question
Part 1 short answers: just a few lines for each

1. What is the problem with marginal cost pricing in the natural monopoly situation? How do regulatory agencies in the United States usually handle the problem?

2. What is oligopoly? How does oligopoly differ from the other kinds of market structure?

3. Why do firms form a cartel? How do cartels achieve their goals?

4. How does a monopoly maximize profits? What price does it charge?

5. Explain the three types of goods: search goods, experience goods and credence goods. What type of advertising would firms likely use for each type of good and why?

Part 2:

Multiple choice questions

Question 1(2 points)

https://ccco.desire2learn.com/content/enforced2012/708391-S_CCCO_ECO202C21_201330/ppg/pearson/tm/et16mc/f55g1q35g1.jpg?_&d2lSessionVal=gohWK7cFyzOLNCZkavlSHERLZ

Refer to the above figure. Profits for this firm are negative

Question 1 options:

A)

only for all points less than B.

B)

only at points B and C.

C)

for points between B and C.

D)

for all points less than B and greater than C.

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Question 2(2 points)

Question 2 unsaved

https://ccco.desire2learn.com/content/enforced2012/708391-S_CCCO_ECO202C21_201330/ppg/pearson/tm/et16mc/f57g1q8g1.jpg?_&d2lSessionVal=gohWK7cFyzOLNCZkavlSHERLZ

In the above figure, if the firm is facing demand curve d2, then to maximize profits it will produce at output level

Question 2 options:

A)

A.

B)

B.

C)

C.

D)

D.

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Question 3(2 points)

Question 3 unsaved

A firm earning economic losses should operate in the short run as long as

Question 3 options:

A)

the price per unit sold is greater than the average fixed cost per unit produced.

B)

the price per unit sold is greater than the average variable cost per unit produced.

C)

marginal revenue is at least the price per unit sold.

D)

the price per unit sold is equal to or greater than the marginal cost of production.

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Question 4(2 points)

Question 4 unsaved

https://ccco.desire2learn.com/content/enforced2012/708391-S_CCCO_ECO202C21_201330/ppg/pearson/tm/et16mc/f58g1q16g1.jpg?_&d2lSessionVal=gohWK7cFyzOLNCZkavlSHERLZ