17All of the following are characteristics of a monopolistic

17All of the following are characteristics of a monopolistic competitor market structure except: a large number of sellers. downward sloping demand. a differentiated product. barriers to entry. 18Which of the following conditions holds for a monopolist, but not for a perfect competitor, at the profit-maximizing level of output? Price = average revenue. Marginal revenue = marginal cost. Price > marginal cost. Profit = (AR-ATC) x Q. 22In comparing monopoly to a perfectly competitive market, which of the following is false? (Hint: Note that I am asking you to compare the monopoly to the entire perfectly competitive industry, not just one perfect competitor firm.) Market price will be higher under monopoly. Equilibrium quantity will be higher under perfect competition. Consumers will be worse off with the monopoly. Employment will be higher under monopoly. 23Perfectly competitive firms are said to be \"small.\" Which of the following best describes this smallness? The individual firm must have fewer than 10 employees. The individual firm faces a downward-sloping demand curve. The individual firm has assets of less than $2 million. The individual firm is unable to affect market price through its output decisions.

Solution

17) In monopolist thefe is no barrier for a firm to enter or exit the industry. Ans is D

18)Price>Mc. In monopoly P>Mc but in perfect competition P=MR=MC

22)Employment will be lower in monopoly because monopoly produces output less than perfectly competitive industry due to which employment created in monopoly will be less. Ans is D

23)ans is D

In perfect competition, firms are small when they cant affect the market equilibrium. Firms are price taker and firm faces a horizontal demand curve.