The figure below shows the demand curve, marginal revenue curve, marginal cost curve and average total cost curve for a monopolist. 
The socially optimal level of output is:
A. 4 units per day.
B. 5 units per day.
C. 10 units per day.
D. 8 units per day.
Answer: D
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Refer to Figure 11-7. When the output level is 100 units average fixed cost is
A) $10. B) $8. C) $5. D) This cannot be determined from the diagram.
For which of the following goods would you most likely observe the characteristic of excludability?
A. A professional baseball game. B. A concert in the city park. C. An interstate highway. D. Exterior Christmas lights.
Which of the following is a commonly-cited benefit of advertising?
a. Advertising can be a signal of the quality of a product. b. Advertising impedes competition. c. Advertising reduces the deadweight loss associated with monopolistic competition. d. Advertising encourages free entry, which increases profits.
Which of the following is an example of monopolistic competition?
a) One firm supplies 60 percent of the product to the market and there are three other rival firms b) Two firms supply the entire market c) Many firms supply similar products, each with some consumers who show significant brand loyalty d) One large firm supplies the entire market