Question:

If the monopolist faces identical demand for his commodity in the two separate markets, by practicing third degree pricediscrimination

A.

Will increase his TR and total profit

B.

Can increase his TR and profit

C.

Cannot increase his TR and profit

D.

Will charge different prices in different market

Answer» c. Cannot increase his TR and profit

Question:

The demand curve for Giffen’s goods:

A.

Vertical

B.

Horizontal

C.

Negative slope

D.

Positive slope

Answer» d. Positive slope

Question:

The pure monopolist who is nondiscriminating must decrease price on all units of aproduct sold in order to sell additional units. This explains why:

A.

there are barriers to entry in pure monopoly.

B.

a monopoly has a perfectly elastic demand curve.

C.

marginal revenue is less than average revenue.

D.

total revenues are greater than total costs at the profit maximizing level of output.

Answer» c. marginal revenue is less than average revenue.

Question:

Shut-down point is a point where price is equal to

A.

AC

B.

AVC

C.

AFC

D.

MC

Answer» b. AVC

Question:

Which of the following can cause shifts in consumption function:

A.

Psychological attitude

B.

Social practices

C.

Business motives

D.

Changes in price level

Answer» d. Changes in price level