1. distinguishing feature of monopoly.
a. there are no close substitutes for a monopolist's product
b. There are many firms in a monopolized industry
c. There are no barriers to entry in a monopolized market
d. A monopolist is a price taker
2. average revenue (For a monopolist) is
a. greater than price at all output levels
b. less than price at all output levels
c. equal to marginal revenue at all output levels
d. more than marginal revenue at all output levels
3. true of the profit earned by a monopilist.
a.Normal profit is ensured where marginal cost exceeds average revenue
b.Profit is maximized where marginal cost equals marginal revenue
c.Profit is maximized along the inelastic portion of the demand curve
d.Normal profit is ensured where price is equal to average total cost
4. Which of the following factors explain the difference in long-run profits earned by a monopolist and a perfectly competitive firm
a.Monopolists experience economies of scale
b.There are no barriers to entry in perfect competition
c. Perfectly competitive firms have high opportunity costs
d.The demand for the monopolist's output is inelastic