Company A’s Data for Production Cost   Quantity Fixed Cost Variable Cost Total Cost Average Fixed Cost Average Variable Cost Average Total Cost Marginal Cost 0     $55         1             $30 2   $55           3           $130 ∕3   4         $105 ∕4     5   155           6   225           7     370       90 8           60   9     610         10     760           If the market is perfectly competitive market, how many units of output will Company A produce? ____ units. Suppose that the market price is $110.  

Helen runs a restaurant, miles from anywhere. She has a monopoly and faces the following demand schedule for meals: Price (dollars per meal) Quantity demanded (meals per week) $5.00 10 4.50 20 4.00 40 3.50 60 3.00 80 2.50 100 2.00 120 1.50 140 1.00 160 Helen’s marginal cost and average total cost are a constant $2.5 per meal. Which of the following statements is (are) correct? (Using multiple answers form) i. If Helen charges all customers the same price for a meal, she should charge the price at $2.5 and she will sell 100 meals per week. ii. If Helen charges all customers the same price for a meal, she should charge the price at $3.5 and she will sell 60 meals per week. iii. The consumer surplus of all customers who buy a meal from Helen will be equal to $55, and the producer surplus in the market will be equal to $60. iv. The consumer surplus of all customers who buy a meal from Helen will be equal to $225, and the producer surplus in the market will be equal to $0. v. The consumer surplus of all customers who buy a meal from Helen will be equal to $0, and the producer surplus in the market will be equal to $225. vi. If Helen charges all customers the same price for a meal, she should charge the price at $3.00 and she will sell 80 meals per week. vii. There is no consumer surplus in the market, but producer surplus will be equal to $100 in the market.

Which of the following is a distinguishing characteristic of oligopoly?

Which of the following is NOT a legal barrier to entry?

If a 6 percent decrease in the price leads to a 5 percent increase in the quantity demanded, the price elasticity of demand is

A market in which competition and entry are restricted by the granting of a public franchise, government license, patent, or copyright is called a

Which of the following can create a monopoly? I. high prices II. public franchise III. patent IV. government license

The key feature of an oligopoly is that there

An example of a monopoly is

Marginal utility theory predicts that a rise in the price of a banana results in