In perfect competition
A few firms dominate the industry
Firms are price makers
There are many buyers but few sellers
There are many buyers and sellers
For a perfectly competitive firm
Total revenue is a straight line
Price is greater than marginal revenue
Price equals total revenue
Price equals total cost
In monopolistic competition firms profit maximize when
Marginal revenue = Average revenue
Marginal revenue = Marginal cost
Marginal revenue = Average cost
Marginal revenue = Total cost
In monopolistic competition if firms are making abnormal profit other firms will enter and
The marginal cost will shift outwards
The demand curve will shift inwards
The average cost will shift downwards
The average variable cost will increase
Which best describes price discrimination?
Charging different prices for different products
Charging the same prices for different products
Charging the same prices for the same products
Charging different prices for the same products
In perfect price discrimination
Consumer surplus is maximized
Produce surplus is zero
Community surplus is maximized
Consumer surplus is zero
The _____ of a firm shows the level of output that the firm chooses to produce corresponding to different value of the market price.
Demand curve
Supply curve
Aggregate demand curve
Aggregate supply
If a few firms dominate an industry the market is known as
Monopolistic competition
Competitively monopolistic
Duopoly
Oligopoly
Product homogeneity is a feature of
Monopoly
Perfect competition
A monopolist will determine very ____ price for a commodity having in elastic demand.
High
Low
Normal
Constant
