Please solve this 4 mcq questions correctly. 1.Sadie's Cleaning Services is a perfectly competitive firm that currently cleans 20 offices anevening. Sadie's marginal cost is less than the price it charges. Sadie's will increase its profit if itcleans:option 1: fewer than 20 offices an eveningoption 2: more than 20 offices an eveningoption 3: 20 offices an evening but increases its priceoption 4: more than 20 offices an evening and charges a higher price2.Tammy sells woolen hats in a perfectly competitive market. The marginal cost of producing 1hat is $12. The marginal cost of producing a second hat is $14 and the marginal cost ofproducing a third hat is $16. The market price of a hat is $14. To maximize profit, how manyhats should Tammy produce everyday?option 1: 1 hatoption 2: 2 hatsoption 3: 3 hatsoption 4: As many hats as possible3.Which of the following is true for a natural monopoly? [More than 1 correct option]option 1: The firm can supply the entire market at a lower cost than two or more firms could.option 2: Its average total cost curve slopes upward as it intersects the demand curveoption 3: The firm is not protected by any barrier to entry.4.Deadweight loss occurs in Monopoly market because- [More than 1 correct option]option 1: Price charged by a monopolist is higher than perfectly competitive marketoption 2: A monopolist makes greater profit by producing at the minimum possible long-runaverage cost.option 3: For a monopoly market marginal benefit equals marginal cost.

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1.Sadie's Cleaning Services is a perfectly competitive firm that currently cleans 20 offices an evening. Sadie's marginal cost is less than the price it charges. Sadie's will increase its profit if it cleans: option 1: fewer than 20 offices an evening option 2: more than 20 offices an evening option 3: 20 offices an evening but increases its price option 4: more than 20 offices an evening and charges a higher price

1.Sadie's Cleaning Services is a perfectly competitive firm that currently cleans 20 offices an evening. Sadie's marginal cost is less than the price it charges. Sadie's will increase its profit if it cleans: option 1: fewer than 20 offices an evening option 2: more than 20 offices an evening option 3: 20 offices an evening but increases its price option 4: more than 20 offices an evening and charges a higher price

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter16: Monopolistic Competition

Section: Chapter Questions

Problem 8PA

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