Can anyone help me with these Economic Questions? Thanks.

Question

Question 1) Since monopolies have a downward-sloping demand curve, regulating monopolies by setting price equal to marginal cost

would..

A. cause the monopolist to operate at less than maximum profit.

B. maximize producer surplus.

C. result in a less-than-optimal total surplus.

D. cause many new firms to enter the market.

Question 2) Which of the following statements is correct?

A. In a perfectly competitive market, changes in demand cause short-term changes in price, and no changes in quantity supplied to the market.

B. In a perfectly competitive market, changes in demand cause no long-term changes in price, and permanent changes in quantity supplied to the market.

C. In a perfectly competitive market, changes in demand cause no changes in price, and long-term changes in quantity supplied to the market.

D. In a perfectly competitive market, changes in demand cause no changes in price, and permanent changes in quantity supplied to the market.

Question 3) A competitive firm will choose to increase production when marginal cost is less than..

A. marginal revenue.

B. the marginal average.

C. average variable cost.

D. average total cost.

Answer 1

.#1

A. cause the monopolist to operate at less than maximum profit.

.#2

B. In a perfectly competitive market, changes in demand cause no long-term changes in price, and permanent changes in quantity supplied to the market.

For perfectly competitive markets there is no long-run profits, and quantity supplied will adjust until profits=0

.#3

A. marginal revenue.