micro problems

Posted by aastha on May 03, 2012; 3:13pm
URL: http://discussion-forum.276.s1.nabble.com/micro-problems-tp7523947.html

1)If the demand curve facing a monopolist is given by p=10q^1.5 then output sold by the monopolist
a: cannot be determined by maximum profits
b: is determined by maximizing profits
c: is determined by maximum profits provided the cost is constant.
d: is determined by maximum profits provided the cost is an increasing function of output.

2)The nature of the long run equilibrium for a monopolistically competitive firm differs from that of a perfectly competitive firm because of
a: the presence of supernormal profits
b: the presence of excess capacity
c: the equality between MR and MC
d: none of the above