Econ prob set 5 review

Total Revenue =

The additional revenue received from producing an additional unit

• Total Revenue

• Marginal Cost

• Marginal Revenue

• Profit

The additional cost from producing an additional unit

• Total Revenue

• Marginal Cost

• Marginal Revenue

• Total Cost

Profits =

• Total Revenue - Total Cost

• (Price - AC)q

• Both answers are correct

• Neither answers are correct

How does a monopolist determine the quantity to produce to maximize their profits?

• Set P = MC

• Set MR = MC

What price will a Monopolist charge?

• They will charge the price the market will bear.

  (the height of the demand curve)

• Set P = MC

• Where MR = MC

How would a perfectly competitive market determine the quantity to produce?

• Set P = MC

• Set MR = MC

What price will a perfectly competitive market charge?

• They will charge the price the market will bear.

  (the height of the demand curve)

• where P = MC

If the market is perfectly competitive (in Long Run Equilibrium), what would firm profit be?

• Profit > 0

• Profit = 0

• Profit < 0