Let the demand function for a product be Q = 100 – 2P. The inverse demand function of this demand function is:

Select one:

a. Q = 100 + 2P.

b. P = 50 – 0.5Q.

c. P = 50 + 0.5Q.

d. none of the statements associated with this question are correct.

Economies of scale exist whenever:

Select one:

a. average total costs decline as output increases.

b. average total costs increase as output increases.

c. average total costs are stationary as output increases.

d. average total costs increase as output increases and average total costs are stationary as output increases.

Which of the following is an example of monopoly?

Select one:

a. Shoe industry in the United States.

b. Local utility industry in a small town.

c. Newspaper industry in New York City.

d. Bread industry in New York City.

Which of the following is true?

Select one:

a. A monopolist produces on the inelastic portion of its demand.

b. A monopolist always earns an economic profit.

c. The more inelastic the demand, the closer marginal revenue is to price.

d. In the short run a monopoly will shutdown if P < AVC.