In monopoly when abnormal profits are made ?

A. The price set is greater than the marginal cost
B. The price is less than the average cost
C. The average revenue equals the marginal cost
D. Revenue equals total cost

In the short run, if the price is above average total cost in a monopolistically competitive market, the firm makes ?

A. Losses and firms exit the market
B. Profits and firms exit the market
C. Losses and firms enter the market
D. Profits and firms enter the market

Defenders of the use of brand names argue that brand names ?

A. All of these answers
B. Are useful even in socialist economics such as the former soviet union
C. Provide information about the quality of the product
GivE firms incentive to maintain high quality

Which of the following is not an argument put forth by economists in support of the use of advertising ?

A. Advertising increases competition
B. Advertising provides information to customers about prices, new products and location of retail outlets.
C. Advertising provides a creative outlet for artists and writers
D. Advertising provides new firms with the means to attract customers from existing firms.

Which of the following products is least likely to be sold in a monopolistically competitive market ?

A. Breakfast
B. Cotton
C. Video games
D. Beer

Which of the following is true with regard to monopolistically competitive firms scale of production and pricing decisions Monopolistically competitive firms produce ?

A. At the efficient scale and charge a price equal to marginal cost
B. At the efficient scale and charge a price above marginal cost
C. With excess capacity and charge a price above marginal cost
D. With excess capacity and charge a price equal to marginal cost

The use of the word “monopoly” in the name of the market structure called “monopolistic competition” refers to the fact that ?

A. Monopolistically competitive firms charge prices equal to their marginal costs just like monopolists
B. A monopolistically competitive firms faces a downward-sloping demand curve for its differentiated product and so does a monopolist
C. Monopolistically competitive markets have free entry and exit just like a monopolistic market
D. Monopolistically competitive firms produce beyond their efficient scale and so do monopolists

Which of the following is true regarding the similarities and differences in monopolistic competition and monopoly ?

A. The monopolist faces a downward-sloping demand curve while the monopolistic competitor faces an elastic demand curve
B. The monopolist charges a price above marginal cost while the monopolistic competitor charges a price equal to marginal cost
C. The monopolist makes economic profits in the long run while the monopolistic competitor makes zero economic profits in the long run
D. Both the monopolist and the monopolistic competitor operate at the efficient scale

Which of the following is true regarding the production and pricing decisions of monopolistically competitive firms? Monopolistically competitive firms choose the quantity at which marginal cost equals ?

A. Marginal revenue and then use the demand curve to determine the price consistent with this quantity
B. Average total cost and then use the supply curve to determine the price consistent with this quantity
C. Marginal revenue and then use the supply curve to determine the price consistent with this quantity
D. Average total cost and then use the demand curve to determine the price consistent with this quantity

UK GDP would exclude which of the following ?

A. Lawyer services purchased by a home buyer
B. The purchase of a new nissan produced in sunderland
C. Copper purchased by tap manufacturer bristan
D. A new art gallery purchased by the city of newcastle