Economics 0455: The private firm as producer and employer Topical Past Paper Questions

The diagram shows the total revenue (TR) and total cost (TC) of a firm in a market. At which level of output will the firm maximise profits?

What would make the existence of a monopoly market more likely? A consumers prefer a variety of choice in products B significant economies of scale can be achieved C there are low barriers to entry and exit for firms D there are no restrictions on international trade

A monopoly firm can often earn greater profits than a firm in a competitive market. Which characteristic of monopoly is most likely to cause this? A It can restrict the entry of new firms. B It is a price-taker. C It is protected by the government. D Its total costs are usually l…