9: Market Structures

Question 1

Oligopoly products are described as:

Answer 1

standardized/homogeneous
or differentiated through marketing

Question 2

Economic profits is different from accounting because it includes:

Answer 2

Opportunity costs

Question 3

All firms will increase output when:

Answer 3

MR > MC

MR= Market price (perfect competition) & will stop production when Price = MR = MC

Question 4

When MR = MC, firms maximize:

Answer 4

maximize profit

(Not revenue)