LISTA – CONCORRÊNCIA MONOPOLÍSTICA

1. When the products are standardized, we can be sure that the industry will behave
competitively.

a. True
b. False

2. When free entry exists, the atomistic or pure competitive model suggests that economic
profit will always be equal to zero.
a. True
b. False

3. All economists believe that additional advertising expenses raise prices that consumers must
pay.

a. True
b. False

4. Since the profit percentage margin for Kellogg's cereal is high and the advertising elasticity
of demand for cereal is high, it is not surprising that Kellogg spends 30% of every dollar of sales
revenue in advertising.

a. True
b. False

5. Advertising is used to change the perception of goods so that they become more elastic.

a. True
b. False

6. NiteLite International is a manufacturing company that makes night lights sold at hardware
stores and drug stores. Night lights are sold in a highly competitive market directly to hardware
stores at a wholesale price of $0.49 each. The retail price of night lights varies, but the typical
price is $1.19. You have just become the new president of NiteLites International and have
learned that at the present level of production, marginal cost is about $0.37. Being the
fantastic economist that you are, your recommendation would be

a. to raise the price you charge for NiteLites.

b. to lower the price you charge for NiteLites.
c. to reduce output to reduce costs.
d. to keep the price charged to hardware stores at $0.49 for NiteLites and try to expand the
number of hardware stores that will sell your products.
7. One virtue of competition is that the division of output produced across firms is efficient.
Suppose that the marginal cost curves of two firms are MC 1 = 6 + 2Q1 and MC2 = 1 + 3Q2. If the
sum of the outputs of Firm 1 and Firm 2 equals 100, then the efficient output division in
competition will be…

a. Firm 1 produces 50 and Firm 2 produces 50.

b. Firm 1 produces more than Firm 2 produces.
c. Firm 2 produces more than Firm 1 produces.
d. none of the above.

8. A criticism of the monopolistic competition model is that

a. it ignores the fact that some products are differentiated.
b. it says firms do not produce at their lowest AC point in the long run, so there are
opportunities to earn more profits by firms producing products jointly.
c. it says that there are positive economic profits in the long run.
d. it shows that price is below marginal cost in the long run.

9. Marty's Party Baskets is an assembler of gift baskets with wine, cheese, and jam in a
competitive industry. The linear regression provides the following annual demand curve:
P = 1246 - 30 · Q. The marginal cost of a basket is $16.
Find the number of baskets that Marty should make in a year.
a. Q = 35
b. Q = 41
c. Q = 45
d. Q = 52

10. Determine the optimal output, Q, for the following firm. Does the information show
whether the firm is competitive, monopolistically competitive, oligopolistic, or monopolistic?
TR = 14 · Q
TC = 48 + Q + 0.5 · Q2
a. Q = 13
b. Q = 8
c. Q = 34
d. Q = 22
11. A Poster Bed Company acredita que seu setor pode ser mais bem caracterizado como de
concorrência monopolista. Uma análise da demanda para sua cama com dossel resultou na
seguinte função demanda estimada para a cama:

𝑃 = 1.760 − 12𝑄
O departamento de análise de custos estimou a função de custo total para a cama pôster
como

𝐶𝑇 = 6.000 + 400𝑄 − 20𝑄² + 𝑄³

1. Calcule o nível de produção que deve ser fabricado para maximizar o lucro de curto
prazo
2. Que preço deve ser cobrado
3. Calcule o lucro total a esse nível de preço-produção
4. Calcule a elasticidade-preço da demanda em um ponto ao nível de produção de
maximização de lucro
5. Que nível de custos fixos a empresa possui em relação à sua produção de camas?
6. Qual é o impacto de um aumento de $ 5.000 no nível de custos fixos sobre o preço
cobrado, as unidades produzidas e o lucro gerado?