Question 1

The deadweight loss from monopoly is a measure of efficiency from monopoly.

Accepted Answer

A) True 
 B)False  False

Question 2

If Coca Cola Company uses heat sensors and microchips to automatically change prices of its products.Which of the following economically describes Coca Cola's goal to charge higher prices for a can of Coke on a hot day?

Accepted Answer

A) price discrimination 
B) rent-seeking 
C) deadweight loss 
D) internalizing an externality 
A) price discrimination 
B) rent-seeking 
C) deadweight loss 
D) internalizing an externality A

Question 3

A local cable company has a monopoly on cable service.If it sells 20 of the services its total revenue is $10,000 and if it sells 21 services its total revenue is $10,600.The marginal revenue of the 21st service sold is:

Accepted Answer

A) $800. 
B) $13. 
C) $850. 
D) $600. 
A) $800. 
B) $13. 
C) $850. 
D) $600. D

Question 4

At the profit-maximizing level of output,price is ________ marginal cost for a perfectly competitive firm and price is ________ marginal cost for a monopolist.

Accepted Answer

A) equal to;greater than 
B) equal to;less than 
C) equal to;equal to 
D) greater than;equal to 
A) equal to;greater than 
B) equal to;less than 
C) equal to;equal to 
D) greater than;equal to

Question 5

What is price discrimination?

Accepted Answer

Price discrimination means sel

Question 6

A product's patent lasts for ________ years.

Accepted Answer

A) 7 
B) 17 
C) 20 
D) 27 
A) 7 
B) 17 
C) 20 
D) 27

Question 7

Which of the following is NOT an example of price discrimination?

Accepted Answer

A) A restaurant offers senior citizens a discount. 
B) A supermarket offers coupons to its customers. 
C) An electric company charges different rates to its business and residential customers. 
D) An electronics superstore charges a lower price than a small retailer for the same television set. 
A) A restaurant offers senior citizens a discount. 
B) A supermarket offers coupons to its customers. 
C) An electric company charges different rates to its business and residential customers. 
D) An electronics superstore charges a lower price than a small retailer for the same television set.

Question 8

Patents encourage innovation.

Accepted Answer

A) True 
 B)False

Question 9

From an economic standpoint,patents reduce efficiency because they serve as a barrier to entry and thus limit market competition.Are there any positive economic benefits of patents? Explain.

Accepted Answer

Yes.Patents provide an incentive for inv

Question 10

A profit-maximizing monopolist will produce an output level at which:

Accepted Answer

A) marginal revenue is zero. 
B) marginal cost is minimized. 
C) price equals marginal cost. 
D) marginal revenue equals marginal cost. 
A) marginal revenue is zero. 
B) marginal cost is minimized. 
C) price equals marginal cost. 
D) marginal revenue equals marginal cost.

Question 11

A firm has the opportunity for price discrimination when:

Accepted Answer

A) the firm has market power. 
B) the firm is subject to price controls. 
C) the firm is able to promote the resale of the good or service. 
D) All of the above are correct. 
A) the firm has market power. 
B) the firm is subject to price controls. 
C) the firm is able to promote the resale of the good or service. 
D) All of the above are correct.

Question 12

A firm has an opportunity of price discrimination if following is met:

Accepted Answer

A) requires that the firm has some control over the price of its product. 
B) the firm must have different consumer groups. 
C) the firm's products are not easily resold. 
D) All of the above are correct. 
A) requires that the firm has some control over the price of its product. 
B) the firm must have different consumer groups. 
C) the firm's products are not easily resold. 
D) All of the above are correct.

Question 13

On any given day,Disney World can price discriminate and charge local visitors a ________ price for a ticket than out of state visitors because local visitors have a more ________ demand.

Accepted Answer

A) lower;inelastic 
B) lower;elastic 
C) higher;inelastic 
D) higher;elastic 
A) lower;inelastic 
B) lower;elastic 
C) higher;inelastic 
D) higher;elastic

Question 14

According to the Application about setting the price of tickets for Major League Baseball games,due to the marginal revenue from ticket sales for a typical Major League Baseball team,the team could increase total revenue from ticket sales by:

Accepted Answer

A) increasing the price of tickets and increasing the quantity of tickets sold. 
B) decreasing the price of tickets and increasing the quantity of tickets sold. 
C) increasing the price of tickets and decreasing the quantity of tickets sold. 
D) decreasing the price of tickets and decreasing the quantity of tickets sold. 
A) increasing the price of tickets and increasing the quantity of tickets sold. 
B) decreasing the price of tickets and increasing the quantity of tickets sold. 
C) increasing the price of tickets and decreasing the quantity of tickets sold. 
D) decreasing the price of tickets and decreasing the quantity of tickets sold.

Question 15

Given that a firm can divide its customers into two groups with different price elasticities of demand,a firm will charge a lower price to the group with the inelastic demand.

Accepted Answer

A) True 
 B)False

Question 16

-Refer to Figure 10.3.The profit-maximizing price for this firm is:

Accepted Answer

A) $5. 
B) $7. 
C) $9. 
D) $11. 
A) $5. 
B) $7. 
C) $9. 
D) $11.

Question 17

Explain what economists mean when they refer to rent-seeking behavior.

Accepted Answer

Firms with monopoly power will earn a la

Question 18

Which of the following is an example of price discrimination?

Accepted Answer

A) Firm A sells its output for less than Firm B. 
B) Firm C doubles the price of its output given a large increase in market demand. 
C) Firm D is the only seller of a product. 
D) Firm E gives senior citizens a 10% discount. 
A) Firm A sells its output for less than Firm B. 
B) Firm C doubles the price of its output given a large increase in market demand. 
C) Firm D is the only seller of a product. 
D) Firm E gives senior citizens a 10% discount.

Question 19

When patents expire,new firms enter the market and prices fall.

Accepted Answer

A) True 
 B)False

Question 20

Manufacturer's rebates for appliances are an example of price discrimination.

Accepted Answer

A) True 
 B)False

The deadweight loss from monopoly is a measure of efficiency from monopoly.

If Coca Cola Company uses heat sensors and microchips to automatically change prices of its products.Which of the following economically describes Coca Cola's goal to charge higher prices for a can of Coke on a hot day?

A local cable company has a monopoly on cable service.If it sells 20 of the services its total revenue is $10,000 and if it sells 21 services its total revenue is $10,600.The marginal revenue of the 21st service sold is:

At the profit-maximizing level of output,price is marginal cost for a perfectly competitive firm and price is marginal cost for a monopolist.

What is price discrimination?

A product's patent lasts for ________ years.

Which of the following is NOT an example of price discrimination?

Patents encourage innovation.

From an economic standpoint,patents reduce efficiency because they serve as a barrier to entry and thus limit market competition.Are there any positive economic benefits of patents? Explain.

A profit-maximizing monopolist will produce an output level at which:

A firm has the opportunity for price discrimination when:

A firm has an opportunity of price discrimination if following is met:

On any given day,Disney World can price discriminate and charge local visitors a price for a ticket than out of state visitors because local visitors have a more demand.

According to the Application about setting the price of tickets for Major League Baseball games,due to the marginal revenue from ticket sales for a typical Major League Baseball team,the team could increase total revenue from ticket sales by:

Given that a firm can divide its customers into two groups with different price elasticities of demand,a firm will charge a lower price to the group with the inelastic demand.

-Refer to Figure 10.3.The profit-maximizing price for this firm is:

Explain what economists mean when they refer to rent-seeking behavior.

Which of the following is an example of price discrimination?

When patents expire,new firms enter the market and prices fall.

Manufacturer's rebates for appliances are an example of price discrimination.

Introduction: What Is Economics

The Key Principles of Economics

Exchange and Markets

Demand, supply, and Market Equilibrium

Elasticity: a Measure of Responsiveness

Market Efficiency and Government Intervention

Consumer Choice: Utility Theory and Insights From Neuroscience

Production Technology and Cost

Perfect Competition

Market Entry and Monopolistic Competition

Oligopoly and Strategic Behavior

Controlling Market Power: Antitrust and Regulation

Imperfect Information: Adverse Selection and Moral Hazard

Public Goods and Public Choice

External Costs and Environmental Policy

The Labor Market and the Distribution of Income

International Trade and Public Policy

Filters

Exam 10: Monopoly and Price Discrimination

The deadweight loss from monopoly is a measure of efficiency from monopoly.

If Coca Cola Company uses heat sensors and microchips to automatically change prices of its products.Which of the following economically describes Coca Cola's goal to charge higher prices for a can of Coke on a hot day?

A local cable company has a monopoly on cable service.If it sells 20 of the services its total revenue is $10,000 and if it sells 21 services its total revenue is $10,600.The marginal revenue of the 21st service sold is:

At the profit-maximizing level of output,price is ________ marginal cost for a perfectly competitive firm and price is ________ marginal cost for a monopolist.

What is price discrimination?

A product's patent lasts for ________ years.

Which of the following is NOT an example of price discrimination?

Patents encourage innovation.

From an economic standpoint,patents reduce efficiency because they serve as a barrier to entry and thus limit market competition.Are there any positive economic benefits of patents? Explain.

A profit-maximizing monopolist will produce an output level at which:

A firm has the opportunity for price discrimination when:

A firm has an opportunity of price discrimination if following is met:

On any given day,Disney World can price discriminate and charge local visitors a ________ price for a ticket than out of state visitors because local visitors have a more ________ demand.

According to the Application about setting the price of tickets for Major League Baseball games,due to the marginal revenue from ticket sales for a typical Major League Baseball team,the team could increase total revenue from ticket sales by:

Given that a firm can divide its customers into two groups with different price elasticities of demand,a firm will charge a lower price to the group with the inelastic demand.

-Refer to Figure 10.3.The profit-maximizing price for this firm is:

Explain what economists mean when they refer to rent-seeking behavior.

Which of the following is an example of price discrimination?

When patents expire,new firms enter the market and prices fall.

Manufacturer's rebates for appliances are an example of price discrimination.

Introduction: What Is Economics

The Key Principles of Economics

Exchange and Markets

Demand, supply, and Market Equilibrium

Elasticity: a Measure of Responsiveness

Market Efficiency and Government Intervention

Consumer Choice: Utility Theory and Insights From Neuroscience

Production Technology and Cost

Perfect Competition

Market Entry and Monopolistic Competition

Oligopoly and Strategic Behavior

Controlling Market Power: Antitrust and Regulation

Imperfect Information: Adverse Selection and Moral Hazard

Public Goods and Public Choice

External Costs and Environmental Policy

The Labor Market and the Distribution of Income

International Trade and Public Policy

Filters

At the profit-maximizing level of output,price is marginal cost for a perfectly competitive firm and price is marginal cost for a monopolist.

On any given day,Disney World can price discriminate and charge local visitors a price for a ticket than out of state visitors because local visitors have a more demand.