ECN 201

1.The four types of market structures we study in economics are perfect competition, monopoly, oligopoly, and monopsony. True False 2. The long run is considered to be the period when a firm’s inputs are mainly variable and at least one input is fixed. True False 3. The government regulates a pure monopoly by setting price where AVC (average variable costs) = D (demand). True False 4. Monopolies, since no close substitutes nor competitors exist, can price whatever they want and still maximize total revenues. True False 5.As competition increases in markets, the demand curve for products becomes more price elastic and downward pressure on prices tends to ensue. True False 6. As an imperfect competitor produces more and more output, we can assume that eventually marginal costs will continue to rise and marginal revenues to fall. True False 7. Generally speaking, consumer surplus will be highest in a perfectly competitive market structure. True False 8. The point where imperfect competitors will price their products and earn the highest level of total revenues is at the midpoint of the demand curve where total revenues are highest on the total revenue curve. True False 9. In general, we can expect higher barriers…