Question

M. The number of businesses in the natural monopoly industry goes up. Because of this, the ATC when producing a a fixed number of units decreases b fixed number of units stays the same. c. variable number of units stays the same. d. fixed number of units increases. 10. Using the graph, determine the following information: Number of units produced: Price charged Dollar value of producer surplus Dollar value of consumer surplus: Dollar value of deadweight loss Price, MR MC VC a. 50: $30; $1,200; $600; $100 b. 35, $65; $1,225: $612.50; $612.50 c. 100; $65; $1,500: $615.50; $1,000 d. 70: $35; $1,225; $615.50: $615.50 11. The business you work for has employed a process that yields increasing returns to scale. This means if the business decides to double all of the production inputs output will a double b. more than double c. less than double d. fall by one-half 12. Farmers have the choice of growing either wheat or rye. The price farmers can get for growing wheat goes up more than the price of rye. This means farmers will: a substitute production of wheat for rye. b. substitute production of rye for wheat. c. lower production of both rye and wheat. d. raise production of both rye and wheat. 13. Your business ears revenue in the amount of $120 when you sell three units of your product. You earn $150 when you sell four units. You earn $180 when you sell five units. You earn $210 when you sell six units. This means your business is a(n): a. perfectly competitor. b. monopolistic competitor. C. oligopolist. d. monopolist.

Answer 1

9) (d) Fixed number of units increases

Due to the repetition of efforts, the cost of production is doubled.

10) (b)

Equilibrium condition for monopoly is, MR = MC

11) (b)more than double

12) (d)

13) (a)

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