Vi Mô 2

All profit-maximizing firms choose the level of output at which

• MR = P

• MR < P

• P = MC

• MR = MC

Airlines that charge higher prices for customers who purchase their tickets at the last minute are

• price discriminating by identifying passengers with higher reservation prices

• not price discriminating because the cost of the ticket is not the same

• lowering total economic surplus

• perfect price discriminators

When a pharmaceutical company introduces a new drug, its research and development costs are _____, and the cost of the chemicals used in manufacturing the drug are ______.

• fixed costs; start - up costs

• start - up costs; fixed costs

• start - up costs; variable costs

• margianl costs; variable costs

A price setter is a firm that

• faces perfectly inelastic demand

• attempts but fails to be perfectly competitive

• has some degree of control over its price

• has the ability to set price at any level it wishes

One problem with the government ownership of natural monopolies is that

• It forces the governemt to either raise taxes or lower spending

• government - owned firms have weaker incentives to cut costs than do privately - owned firms

• the government cound violate its own antitrust laws

• the government has no reason to set price equal to marginal cost

Suppose the accompanying figure shows the demand curve, marginal revenue curve, and marginal cost curve for a monopolist. At this monopolist's profit-maximizing level of output, deadweight loss equals

• $1000

• $4000

• $2000

• $6000

In order to effectively price discriminate, one requirement is that a seller must be able to

• resell the product

• identify customers with different reservation prices

• reduce costs when producing the discounted item

• avoid detection because price discrimination is illegal

Patents, which confer market power, are intended to

• protect consumers from imitations or knockoffs

• encourage innovation by helping firms recoup the costs of research and development

• enable patent holders to charge lower prices for new and innovative products

• maintain the dominance of U.S. firms

If a firm's total revenue is $112 when it sells 16 units, $119 when it sells 17 units and $126 when it sells 18 units, then the firm is

• an imperfectly competitive firm

• a perfect competitive firm

• either a perfectly or imperfectly competitive firm

• only an imperfectly competitive firm if it sets MR=MC

An imperfectly competitive firm faces a demand curve that is _____, while a perfectly competitive firm faces a demand curve that is ______.

• horizontal; downward-sloping

• vertical; downward- sloping

• downward - sloping; horizontal

• vertical; horizontal