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Suppose that the inverse demand in a market is P = 100-2Q. A firm’s marginal cost is constant and equal to $70. If the marginal cost increased from $70 to $80 and the firm is a monopoly, then it would raise its price _____. If the marginal cost increased from $70 to $80 and the firm operates in a perfectly competitive market, then the market price would _____.

A firm is producing 8 units of output at an average total cost of $40. When the firm produces 9 units of output, average total cost rises to $54. What is the marginal cost of the nineth unit of output?

Antitrust laws

At Flower Bakery, Camden notices that the equilibrium price of poppyseed muffins has decreased and the equilibrium quantity has decreased. Which of the following could be responsible for this pattern?

In an indirect price discrimination mechanism, a firm _______.

Suppose a firm’s total cost is given by TC = 210+10Q+3Q2, and its marginal cost is given by MC = 10+6Q. It operates in a perfectly competitive market where the price per unit of output is $100. What value of Q maximizes the firm’s profits?

Suppose a perfectly competitive industry has 200 firms, and the short-run supply curve for each firm is given by Q = 4P. What is the short-run industry supply curve?

Use figure 10.7 to answer the following question: Figure 10.7 Suppose a firm has two types of customers but cannot tell which type of buyer the customer is before a purchase is made. If the firm wanted to use quantity discounting, it should charge _____ per unit for any quantity purchased or _____.

Suppose that a monopolist experiences an increase in its marginal cost. Then, we expect that the equilibrium price ____ and the equilibrium quantity ____.

In a perfectly competitive industry, the equilibrium price is $10, and the minimum average total cost of the industry’s firms is $20. If this is a constant-cost industry, we can expect that in the long run, firms will ___ the market, shifting the industry’s short-run supply curve ___.