Indicate whether each of the following statements is true, false, or uncertain,
ID: 1122415 • Letter: I
Question
Indicate whether each of the following statements is true, false, or uncertain, and explain the answer. If a word or phrase is bolded, the answer must include a concise definition of the word or phrase.
1. A profit-maximizing monopolist never produces in the inelastic part of a linear demand curve.
2. A constant cost industry implies constant returns to scale.
3. If a firm is producing at the profit maximizing level of output, it must be making a profit.
4. Perfect competition guarantees allocative efficiency.
5. Perfect competition guarantees technical efficiency.
6. A profit-maximizing monopolist can never be allocatively efficient.
7. The Long-Run Supply curve of a perfectly competitive industry cannot be downward sloping.
8. Increasing Returns to Scale means that the long-run AC is upward sloping.
9. Diminishing marginal product in a factor means that if one more of that factor is hired, output will fall.
10. The ATC function intersects the MC function at the MC’s minimum.
11. The short-run supply curve of a competitive firm is its MC curve.
12. The ATC curve intersects the MC curve at the MC’s minimum.
13. The supply curve of the monopolist is its MC curve.
14. Dead-weight loss can never be zero.
15. Airlines practice of stand-by ticket pricing is irrational.
16. Natural monopolies cannot be forced into marginal cost pricing.
Explanation / Answer
1) The answer is TRUE.
because monopoly do not produce in inelastic part of linear demand curve because, the demand curve is inelastic the marginal revenue derived from each extra unit goes to negative . therefore no monopolist prodoce where its marginal revenue is negative.
2) please upload it again. its against chegg policy.