A monopoly firm can sell 200 units of output for 3600 per un

A monopoly firm can sell 200 units of output for $36.00 per unit. Alternatively, it can sell 201 units of output for $35.80 per unit. What is the marginal revenue of the 201st unit of output? 29. a. S35.80 b. $4.20 c. $4.20 d. $35.80 30. For a monopoly firm, which of the following equalities holds? a. price marginal revenue b. price average revenue c. price total revenue d. marginal revenue average revenue Supply curves tell us how much producers are willing to supply at any given price. What type of supply curves will monopoly firms have? 31. a. vertical supply curves b. steeper supply curves than competitive firms c. flatter supply curves than competitive firms d. no supply curves 32. Ignoring oligopoly and focusing on the other three types of market structure, in which of those market structures does a profit-maximizing firm charge a price that exceeds marginal cost? a. monopoly only b. monopoly and monopolistic competition only c. monopoly, monopolistic competition, and perfect competition d. It depends on whether we are in the short run or the long run. 33. In the short run, a firm in a monopolistically competitive market operates much like what type of firm? a. a perfectly competitive firm b. an oligopoly firm c. a monopoly d. a duopoly / 10

Solution

29) The correct choice is C. - $ 4.20

Revenue at 200 units = $ 36 * 200

Revenue at 200 units = $ 7200

Revenue at 201 units = $ 35.80 * 201

Revenue at 201 units =$ 7195.80

Marginal revenue = $ 7195.80 - $ 7200

Marginal revenue = - $ 4.2

30) The correct choice is b

Explanation:-  The monopolist\'s price equals the average revenue per unit.

31) The correct choice is d

Explanation:- There is no supply curve under monopoly because it is not a price taker but it chooses its own price. Since the monopoly firm is free to choose any price it wants, it will always choose the profit maximizing price and therefore the notion of supply curve does not apply to monopoly.

32) The correct choice is b

Explanation:- A monopoly and a monopolistic firm faces a downward sloping demand curve and therefore price exceeds both marginal revenue and marginal cost.