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38
38. the When the demand curve is a downward sloping straight line, the quantity at which the demand curve intersects the horizontal (quantity) axis is quantity at which the marginal revenue curve intersects the horizontal (quantity) axis A equal to B. less than C. twice D. four times 39. For a monopolist, price marginal revenue A. always equals B. is less than C. is greater than D. is first greater than and then less than 40. When monopolists perfectly price discriminate, they A charge different prices to different buyers. B. attempt to capture consumer surplus as profit. C. can eliminate the deadweight loss to society of a monopoly. D. All of the above are correct 41. industry Price is NOT a firm decision variable in ain) A. perfectly competitively B. monopolistic C. monopolistically competitive D. oligopolistic 42 The feature that distinguishes monopolistic competition from perfect competition is that monopolistically competitive firms are A large relative to the market. B. price takers. C. able to block the entry of other firms. D. able to differentiate their products.
Expert Solution
Answer 38 - correct option is C
Reason - since MR = 1/2 Demand curve . Therefore demand curve will be twice of MR. so when demand curve is downward sloping , the quantity at which demand curve intersects the horizontal axis is twice the quantity at which marginal revenue intersect the horizontal axis.
Answer 39 - correct option is C
Reason - For a monopolist , price is always greater than marginal revenue since the demand curve is downward sloping.
Other option are wrong -
As for perfectly competitive firm Price is equal to marginal revenue and for monopoly , monopolistic and oligopoly price is always greater than MR
Answer 40 - correct option is A
Reason - When monopolist perfectly price discriminate they charge different price to different buyers so as to maximise their profits.
Other options as wrong as option B ,C and D do not relate to price discrimination
Answer 41 - correct option is A
Reason - Price is not a firm decision variable in perfectly competitive firm since perfectly competitive firm is a price taker
Other option are incorrect because monopoly , monopolistic and oligopoly competitive firms are price makers so they can influence the price and it is firm's decision
Answer 42 - correct option is D
Reason - Monopolistically firm can differentiate their products while perfectly competitive firm sell homogeneous products
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