WorksheetsPerfect Competition and Monopoly
Total questions: 15
Worksheet time: 21mins
Which of the following could attract new firm to join an industry?
Normal profits
Economic losses
Economic profits
Accounting profits
A firm operating in a perfectly competitive market will shut down when price is below the minimum of a(n) ____________.
marginal cost curve
average total cost curve
average fixed cost curve
average variable cost curve
A perfect competitive firm charges a price that is ____________.
different to other firms
higher than other firms
lower than other firms
similar to other firms
A firm faces a perfectly elastic demand curve, if _____________.
MC = MR
MR = AR
AR = MC
ATC = AVC
Which of the following describes a monopoly firm?
Single seller
Many sellers
Many substitutes
No barrier to entry
If a monopoly firm practices price discrimination the firm will _____________.
earn smaller profit
produce lower quantity than before price discrimination
charge a higher price when demand is inelastic and a lower price when demand is elastic
charge a higher price when demand is elastic and a lower price when demand is inelastic
Identify the profit maximizing level of output for this monopoly firm.
Identify the profit maximizing level of price for this monopoly firm.
Based on the following graph, calculate the total profit earns by this firm.
List two (2) characteristics of monopoly firm.
Based on the following graph, identify the market structure the firm is operating in.
Based on the following graph, label i.
Based on the following graph, label h.
Determine the profit at equilibrium. State the type of profit.
Based on the following graph, should the firm continue or shut down its operation? Why?
