The profit-maximizing advertising-sales ratio will increase with ________.
Select one:
a. Incremental margin;
b. Advertising elasticity of demand;
c. Both of the above.

If a monopolys demand curve shifts,
Select one:
a. The profit-maximizing price will change;
b. The marginal revenue curve will also shift;
c. Both of the above.

For a buyer facing an upward-sloping supply curve, the marginal expenditure exceeds the price because
________.
Select one:
a. Inframarginal units are cheaper;
b. Supply is elastic;
c. It must raise price to buy an additional unit.

There is no market supply curve in a
Select one:
a. Perfectly competitive market.
b. Monopolistically competitive market.
c. Monopolistic market.
d. Monopolistically competitive and monopolistic markets.

Firms have market power in:
Select one:
a. Perfectly competitive markets.
b. Monopolistically competitive markets.
c. Monopolistic markets.
d. Monopolistically competitive markets and monopolistic markets.

A monopoly has the entire market demand, but the demand may be elastic or inelastic.
Select one:
a. True;

b. False.

For a seller facing a downward-sloping demand curve, the marginal revenue is less than the price because
________.
Select one:
a. Inframarginal units are more expensive;
b. Demand is elastic;
c. It must reduce price to sell an additional unit.

A monopoly may set a price close to marginal cost because ________.
Select one:
a. Its demand is elastic;
b. It has few competitors;
c. The market is not contestable.

Competitors may restrain competition through ________.
Select one:
a. Cartel;
b. Horizontal integration;
c. Both of the above.

If a monopsonys marginal benefit exceeds its marginal expenditure, it should _________.
Select one:
a. Reduce purchases;
b. Raise purchases
c. Reduce or raise purchases, depending on the circumstances