1. For a monopoly,
mr > p
ar = p
mr = p
ar > p

2. A monopolist will profit maximize by producing the quantity of output where:
A. mc = d
B. mc = ar
C. p = mc
D. mc = mr
3. If a monopolist is earning profit greater than zero in short-run equilibrium,
A. ar > atc
B. ar > avc
C. ar > mr
D all of the above
4. In short-run equilibrium, a monopolist will
A. earn profit equal to zero
B. earn profit greater than zero
C. operate at a loss
D. all of the above are possible
5. In an oligopolistic market, interdependence refers to
A. a firm’s behavior is dependent upon whether the good is standardized or not
B. a firm’s revenue is depended upon the reactions of other firms in the industry
C. a firm’s revenue is dependent upon the cost of the good
D. a firm’s profits are dependent on the comparison between it’s revenues and total costs
6. In the cooperative, price-leadership model of an oligopostic market, the “leader” cooperates by
A. charging a price so the rest of the industry earns profit greater than zero
B. determining its market share without taking market share from the rest of the industry
C. charging whatever price the rest of the industry charges
D. constantly charging less than the rest of the industry, thereby increasing it’s own revenues.
7. In the cooperative, price-leadership model of an oligopostic market, the leader will have a market share:
less than the rest of the industry combines
greater than the industry combined
equal to the rest of the industry combined
any o the above are possible
8. In the kinked demand model of an oligopostic market,
A. rivals will follow price increases but not decreases
B. Rivals will follow price decreases but not increases
C. rivals will follow any price change
D. rivals will not follow any price change
9. For a firm producing a profit maximizing output in the kinked demand model of an oligopostic market,
A. mr = mc
B. mr = ar
C. p = ar
D. mr = atc

when comparing a…