Part 1 short answers: just a few lines for each
 
What is the problem with marginal cost pricing in the natural monopoly situation? How do regulatory agencies in the United States usually handle the problem?
 
What is oligopoly? How does oligopoly differ from the other kinds of market structure?
 
Why do firms form a cartel? How do cartels achieve their goals?
 How does a monopoly maximize profits? What price does it charge?
Explain the three types of goods: search goods, experience goods and credence goods. What type of advertising would firms likely use for each type of good and why?
Part 2:
Multiple choice questions
Question 1 (2 points)
 
Refer to the above figure. Profits for this firm are negative
Question 1 options:
A) 
only for all points less than B.
B) 
only at points B and C.
C) 
for points between B and C.
D) 
for all points less than B and greater than C.
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Question 2 (2 points)
 
In the above figure, if the firm is facing demand curve d2, then to maximize profits it will produce at output level
Question 2 options:
A) 
A.
B) 
B.
C) 
C.
D) 
D.
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Question 3 (2 points)
 
A firm earning economic losses should operate in the short run as long as
Question 3 options:
A) 
the price per unit sold is greater than the average fixed cost per unit produced.
B) 
the price per unit sold is greater than the average variable cost per unit produced.
C) 
marginal revenue is at least the price per unit sold.
D) 
the price per unit sold is equal to or greater than the marginal cost of production.
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Question 4 (2 points)
 
In the above figure, assume d3 is the demand curve faced by this firm. Which is true?
Question 4 options:
A) 
This firm is earning an economic profit.
B) 
This firm is experiencing an economic loss.
C) 
This firm is breaking even.
D) 
This firm’s total revenues equal HRD0.
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Question 5 (2 points)
 
The profit-maximizing level of output for a firm occurs at the point at…