Question 1

You are the manager of a firm that sells its product in a competitive market at a price of $60.Your firm's cost function is C = 33 + 3Q2.The profit-maximizing output for your firm is:

Accepted Answer

A)   3.
B)   5.
C)   6.
D)   10.E) A) and C)
F) B) and C)

Question 2

Which of the following market structures would you expect to yield the greatest product variety?

Accepted Answer

A)   Monopoly
B)   Monopolistic competition
C)   Bertrand oligopoly
D)   Perfect competitionE) B) and D)
F) B) and C)

Question 3

You are the manager of a monopoly that faces a demand curve described by P = 230 − 20Q.Your costs are C = 5 + 30Q.Your firm's maximum profits are:

Accepted Answer

A)   495.
B)   475.
C)   480.
D)   415.E) C) and D)
F) B) and D)

Question 4

Suppose that initially the price is $20 in a perfectly competitive market.Firms are making zero economic profits.Then the market demand shrinks permanently,some firms leave the industry,and the industry returns to a long-run equilibrium.What will be the new equilibrium price,assuming cost conditions in the industry remain constant?

Accepted Answer

A)   $20
B)   $16
C)   Lower than $20 but exact value cannot be known without more information.
D)   Larger than $20 but exact value cannot be known without more information.E) A) and C)
F) B) and C)

Question 5

The second-order condition for a firm maximizing its profits operating in a perfectly competitive market is:

Accepted Answer

A)   (d2/dQ2)  
B)   − (d2C(Q) /dQ2)  
C)   − (dMC/dQ)  
D)   All of the statements associated with this question are correct.E) B) and C)
F) A) and C)

Question 6

You are the manager of a monopoly that faces a demand curve described by P = 63 − 5Q.Your costs are C = 10 + 3Q.The revenue-maximizing output is:

Accepted Answer

A)   10/63.
B)   5.
C)   6.3.
D)   None of the preceding answers is correct.E) All of the above
F) A) and D)

Question 7

You are the manager of a monopoly that faces an inverse demand curve described by P = 200 − 15Q.Your costs are C = 15 + 20Q.The profit-maximizing price is:

Accepted Answer

A)   $20.
B)   $110.
C)   $135.
D)   $290.E) B) and D)
F) B) and C)

Exam 8: Managing in Competitive, Monopolistic, and Monopolistically Competitive Markets

You are the manager of a monopoly that faces a demand curve described by P = 63 − 5Q.Your costs are C = 10 + 3Q.The revenue-maximizing output is:

Correct Answer
verified

You are the manager of a monopoly that faces an inverse demand curve described by P = 200 − 15Q.Your costs are C = 15 + 20Q.The profit-maximizing price is:

Correct Answer
verified

You are the manager of a firm that sells its product in a competitive market at a price of $60.Your firm's cost function is C = 33 + 3Q².The profit-maximizing output for your firm is:

Correct Answer
verified

You are the manager of a monopoly that faces a demand curve described by P = 230 − 20Q.Your costs are C = 5 + 30Q.Your firm's maximum profits are:

Correct Answer
verified

Correct Answer
verified

The second-order condition for a firm maximizing its profits operating in a perfectly competitive market is:

Correct Answer
verified

Which of the following market structures would you expect to yield the greatest product variety?

Correct Answer
verified

Exam 8: Managing in Competitive, Monopolistic, and Monopolistically Competitive Markets

You are the manager of a monopoly that faces a demand curve described by P = 63 − 5Q.Your costs are C = 10 + 3Q.The revenue-maximizing output is:

Correct AnswerverifiedShow Answer

You are the manager of a monopoly that faces an inverse demand curve described by P = 200 − 15Q.Your costs are C = 15 + 20Q.The profit-maximizing price is:

Correct AnswerverifiedShow Answer

You are the manager of a firm that sells its product in a competitive market at a price of $60.Your firm's cost function is C = 33 + 3Q2.The profit-maximizing output for your firm is:

Correct AnswerverifiedShow Answer

You are the manager of a monopoly that faces a demand curve described by P = 230 − 20Q.Your costs are C = 5 + 30Q.Your firm's maximum profits are:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The second-order condition for a firm maximizing its profits operating in a perfectly competitive market is:

Correct AnswerverifiedShow Answer

Which of the following market structures would you expect to yield the greatest product variety?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

You are the manager of a firm that sells its product in a competitive market at a price of $60.Your firm's cost function is C = 33 + 3Q².The profit-maximizing output for your firm is:

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified