Monopoly Graph Review- Microeconomics

This video tutorial provides a quick overview of economic concepts related to perfect competition and monopolies. It explains how to draw and interpret demand curves, marginal revenue, and marginal cost. The tutorial also covers the production quantity and pricing strategies used by monopolies, emphasizing the importance of understanding these concepts for economic analysis.

What is the relationship between price and quantity on a demand curve?

• Exponential relationship

• No relationship

• Inverse relationship

• Direct relationship

In a monopoly, how does marginal revenue compare to demand?

• Marginal revenue is unrelated to demand

• Marginal revenue is equal to demand

• Marginal revenue is greater than demand

• Marginal revenue is less than demand

Where does a firm produce in a monopoly according to the rule discussed?

• Where price equals marginal cost

• Where marginal cost equals average total cost

• Where demand equals supply

• Where marginal revenue equals marginal cost

What determines the price a monopoly charges?

• What consumers are willing to pay

• The marginal cost

• The average total cost

• The cost of production

How is profit calculated in a monopoly?

• By adding demand to marginal revenue

• By subtracting marginal cost from price

• By dividing price by quantity

• By comparing price to average total cost