Question 1

-Refer to Figure 10.9.The profit-maximizing level of output for the monopolist is:

Accepted Answer

A) 500. 
B) 600. 
C) 800. 
D) 1200. 
A) 500. 
B) 600. 
C) 800. 
D) 1200.

Question 2

When comparing a monopoly to a perfectly competitive industry at the equilibrium point,we find that monopoly is:

Accepted Answer

A) inefficient because it charges higher prices. 
B) inefficient because it generates less output. 
C) efficient because it generate more output due to economies of scale. 
D) is neither efficient nor inefficient. 
A) inefficient because it charges higher prices. 
B) inefficient because it generates less output. 
C) efficient because it generate more output due to economies of scale. 
D) is neither efficient nor inefficient.

Question 3

-Refer to Figure 10.2.The marginal revenue of the 10th pound of burritos is:

Accepted Answer

A) -$4. 
B) -$1. 
C) $1. 
D) $4. 
A) -$4. 
B) -$1. 
C) $1. 
D) $4.

Question 4

Rent seeking will lower the social cost of monopoly.

Accepted Answer

A) True 
 B)False

Question 5

Which one of the following is good example of a natural monopoly?

Accepted Answer

A) electricity 
B) cable TV service 
C) water systems 
D) all of the above 
A) electricity 
B) cable TV service 
C) water systems 
D) all of the above

Question 6

Patents are barriers to entry created by:

Accepted Answer

A) contractual agreement. 
B) consumer associations. 
C) industry associations. 
D) governments. 
A) contractual agreement. 
B) consumer associations. 
C) industry associations. 
D) governments.

Question 7

-Refer to Figure 10.3.In the long run this monopoly firm's profit will:

Accepted Answer

A) fall. 
B) rise. 
C) remain unchanged. 
D) become normal. 
A) fall. 
B) rise. 
C) remain unchanged. 
D) become normal.

Question 8

-Refer to Figure 10.3.If this firm is producing the profit-maximizing quantity and selling it at the profit-maximizing price,the firm's profit will be:

Accepted Answer

A) $80. 
B) $84. 
C) $88. 
D) $132. 
A) $80. 
B) $84. 
C) $88. 
D) $132.

Question 9

-Refer to Figure 10.5.The profit-maximizing level of output for the Memory Company is ________ high school yearbooks.

Accepted Answer

A) 0 
B) 200 
C) 300 
D) 350 
A) 0 
B) 200 
C) 300 
D) 350

Question 10

For a non-price discriminating monopolist to sell more units of output:

Accepted Answer

A) the price must be increased. 
B) the price must be reduced. 
C) demand must become more elastic. 
D) the other competing firms must sell fewer units. 
A) the price must be increased. 
B) the price must be reduced. 
C) demand must become more elastic. 
D) the other competing firms must sell fewer units.

Question 11

From society's point of view,a monopolist produces too little because price:

Accepted Answer

A) is less than marginal cost. 
B) is less than average cost. 
C) exceeds average cost. 
D) exceeds marginal cost. 
A) is less than marginal cost. 
B) is less than average cost. 
C) exceeds average cost. 
D) exceeds marginal cost.

Question 12

Barriers to entry are used to:

Accepted Answer

A) enable a firm to exercise control over the price of its product. 
B) prevent other firms from entering the market. 
C) allow the firm to earn economic profits. 
D) all of the above 
A) enable a firm to exercise control over the price of its product. 
B) prevent other firms from entering the market. 
C) allow the firm to earn economic profits. 
D) all of the above

Question 13

The government does have the legal authority to break up monopolies into smaller companies.

Accepted Answer

A) True 
 B)False

Question 14

Suppose that a local gym can divide its customers into two groups with different price elasticities of demand.Which of the following is true?

Accepted Answer

A) If a local gym.uses price discrimination,it will charge the lower price to the group with the most price elastic demand. 
B) If a local gym uses price discrimination,it will charge the higher price to the group with the most price elastic demand. 
C) Although the different groups have different price elasticities of demand,they have the same willingness-to-pay for gym memberships. 
D) Price discrimination will not benefit a local gym. 
A) If a local gym.uses price discrimination,it will charge the lower price to the group with the most price elastic demand. 
B) If a local gym uses price discrimination,it will charge the higher price to the group with the most price elastic demand. 
C) Although the different groups have different price elasticities of demand,they have the same willingness-to-pay for gym memberships. 
D) Price discrimination will not benefit a local gym.

Question 15

Strawberry Inc.has a monopoly on the sale of a specialized smartphone.If it sells 9 of these smartphones its total revenue is $1,800,and if it sells 10 smartphones its total revenue is $1,950.The marginal revenue of the tenth smartphone sold is:

Accepted Answer

A) $150. 
B) $75. 
C) $1,950. 
D) $1,800. 
A) $150. 
B) $75. 
C) $1,950. 
D) $1,800.

Question 16

In a monopoly,the market demand curve is:

Accepted Answer

A) the same as the demand curve facing the firm. 
B) the summation of all the individual firm's demand curves. 
C) nonexistent. 
D) the marginal cost curve above minimum average variable cost. 
A) the same as the demand curve facing the firm. 
B) the summation of all the individual firm's demand curves. 
C) nonexistent. 
D) the marginal cost curve above minimum average variable cost.

Question 17

What three conditions must be met in order for a firm to be able to price discriminate?

Accepted Answer

(1)The firm must have market p

Question 18

If the chimney sweep market became more competitive,one market change that would be expected is:

Accepted Answer

A) lower output. 
B) higher costs. 
C) higher profits. 
D) lower prices. 
A) lower output. 
B) higher costs. 
C) higher profits. 
D) lower prices.

Question 19

-Refer to Figure 10.5.The profit-maximizing price for the Memory Company's high school yearbook is:

Accepted Answer

A) $0. 
B) $9. 
C) $16. 
D) $20. 
A) $0. 
B) $9. 
C) $16. 
D) $20.

Question 20

Tower Communications Inc.has a monopoly over local cellphone service.If Tower Communications Inc.is producing where marginal revenue is greater than marginal cost,the firm:

Accepted Answer

A) could increase profits by reducing output. 
B) could increase profits by increasing output. 
C) is maximizing profits. 
D) must be earning a zero profit. 
A) could increase profits by reducing output. 
B) could increase profits by increasing output. 
C) is maximizing profits. 
D) must be earning a zero profit.

-Refer to Figure 10.9.The profit-maximizing level of output for the monopolist is:

When comparing a monopoly to a perfectly competitive industry at the equilibrium point,we find that monopoly is:

-Refer to Figure 10.2.The marginal revenue of the 10th pound of burritos is:

Rent seeking will lower the social cost of monopoly.

Which one of the following is good example of a natural monopoly?

Patents are barriers to entry created by:

-Refer to Figure 10.3.In the long run this monopoly firm's profit will:

-Refer to Figure 10.3.If this firm is producing the profit-maximizing quantity and selling it at the profit-maximizing price,the firm's profit will be:

-Refer to Figure 10.5.The profit-maximizing level of output for the Memory Company is ________ high school yearbooks.

For a non-price discriminating monopolist to sell more units of output:

From society's point of view,a monopolist produces too little because price:

Barriers to entry are used to:

The government does have the legal authority to break up monopolies into smaller companies.

Suppose that a local gym can divide its customers into two groups with different price elasticities of demand.Which of the following is true?

Strawberry Inc.has a monopoly on the sale of a specialized smartphone.If it sells 9 of these smartphones its total revenue is $1,800,and if it sells 10 smartphones its total revenue is $1,950.The marginal revenue of the tenth smartphone sold is:

In a monopoly,the market demand curve is:

What three conditions must be met in order for a firm to be able to price discriminate?

If the chimney sweep market became more competitive,one market change that would be expected is:

-Refer to Figure 10.5.The profit-maximizing price for the Memory Company's high school yearbook is:

Tower Communications Inc.has a monopoly over local cellphone service.If Tower Communications Inc.is producing where marginal revenue is greater than marginal cost,the firm:

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

-Refer to Figure 10.9.The profit-maximizing level of output for the monopolist is:

When comparing a monopoly to a perfectly competitive industry at the equilibrium point,we find that monopoly is:

-Refer to Figure 10.2.The marginal revenue of the 10th pound of burritos is:

Rent seeking will lower the social cost of monopoly.

Which one of the following is good example of a natural monopoly?

Patents are barriers to entry created by:

-Refer to Figure 10.3.In the long run this monopoly firm's profit will:

-Refer to Figure 10.3.If this firm is producing the profit-maximizing quantity and selling it at the profit-maximizing price,the firm's profit will be:

-Refer to Figure 10.5.The profit-maximizing level of output for the Memory Company is ________ high school yearbooks.

For a non-price discriminating monopolist to sell more units of output:

From society's point of view,a monopolist produces too little because price:

Barriers to entry are used to:

The government does have the legal authority to break up monopolies into smaller companies.

Suppose that a local gym can divide its customers into two groups with different price elasticities of demand.Which of the following is true?

Strawberry Inc.has a monopoly on the sale of a specialized smartphone.If it sells 9 of these smartphones its total revenue is $1,800,and if it sells 10 smartphones its total revenue is $1,950.The marginal revenue of the tenth smartphone sold is:

In a monopoly,the market demand curve is:

What three conditions must be met in order for a firm to be able to price discriminate?

If the chimney sweep market became more competitive,one market change that would be expected is:

-Refer to Figure 10.5.The profit-maximizing price for the Memory Company's high school yearbook is:

Tower Communications Inc.has a monopoly over local cellphone service.If Tower Communications Inc.is producing where marginal revenue is greater than marginal cost,the firm:

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