Question 1

For a non-discriminating monopolist to sell one more unit, it must

Accepted Answer

A)  raise the price of only the last unit produced. 
B)  lower the price of only the last unit produced. 
C)  raise the price of the last as well as all previous units produced. 
D)  lower the price of the last as well as all previous units produced. 
A)  raise the price of only the last unit produced. 
B)  lower the price of only the last unit produced. 
C)  raise the price of the last as well as all previous units produced. 
D)  lower the price of the last as well as all previous units produced.

Question 2

Refer to the information provided in Figure 13.4 below to answer the question(s) that follow.   Figure 13.4
-Refer to Figure 13.4. The ________ level of output for this monopolist is 22 units of output.

Accepted Answer

A)  loss-minimizing 
B)  profit-maximizing 
C)  break-even 
D)  shutdown 
A)  loss-minimizing 
B)  profit-maximizing 
C)  break-even 
D)  shutdown

Question 3

A firm must be able to ________ competition if it is to exercise control over the price of its product.

Accepted Answer

A)  maximize 
B)  increase 
C)  not change 
D)  limit 
A)  maximize 
B)  increase 
C)  not change 
D)  limit

Question 4

Related to the Economics in Practice on page 281: The foreign visitors to the temples of Laos are typically much richer than the local Laotians. This tends to make the foreign visitors ________ buyers when it comes to ticket prices to enter the temples.

Accepted Answer

A)  perfectly elastic 
B)  more elastic 
C)  less elastic 
D)  perfectly inelastic 
A)  perfectly elastic 
B)  more elastic 
C)  less elastic 
D)  perfectly inelastic

Question 5

The rule of reason is the criterion introduced by the courts for determining whether a firm's action was illegal under the Clayton Act.

Accepted Answer

A) True 
 B)False

Question 6

Assuming demand is linear, the shape of a monopolist's total revenue schedule is a

Accepted Answer

A)  straight line passing through the origin. 
B)  straight line with negative slope. 
C)  curve from the origin with increasing slope. 
D)  curve from the origin with decreasing slope. 
A)  straight line passing through the origin. 
B)  straight line with negative slope. 
C)  curve from the origin with increasing slope. 
D)  curve from the origin with decreasing slope.

Question 7

We call a market where there is only one producer of a good or service a monopoly.

Accepted Answer

A) True 
 B)False

Question 8

Monopolies, oligopolies, and monopolistic competitive industries all

Accepted Answer

A)  earn positive profits in the long run. 
B)  have market power. 
C)  are completely unconstrained in their pricing. 
D)  raise price and quantity over what would occur in perfect competition in order to maximize their profits. 
A)  earn positive profits in the long run. 
B)  have market power. 
C)  are completely unconstrained in their pricing. 
D)  raise price and quantity over what would occur in perfect competition in order to maximize their profits.

Question 9

Because the monopolist is the sole producer of a good, it can never incur a loss.

Accepted Answer

A) True 
 B)False

Question 10

Refer to the information provided in Figure 13.1 below to answer the question that follows.   Figure 13.1
-Refer to Figure 13.1. The demand curve for insulin is most likely represented by

Accepted Answer

A)  Panel A. 
B)  Panel B. 
C)  Panel C. 
D)  Panel D. 
A)  Panel A. 
B)  Panel B. 
C)  Panel C. 
D)  Panel D.

Question 11

Refer to the information provided in Figure 13.5 below to answer the question that follows.   Figure 13.5
-Refer to Figure 13.5. The Silver Exchange has a monopoly over the sale of solid silver walking sticks. The Silver Exchange has hired you as an economic consultant. You should advise this monopolist to

Accepted Answer

A)  shut down in the short run and exit the industry in the long run. 
B)  produce in the short run and expand capacity in the long run. 
C)  produce in the short run but exit the industry in the long run. 
D)  shut down in the short run but expand capacity in the long run. 
A)  shut down in the short run and exit the industry in the long run. 
B)  produce in the short run and expand capacity in the long run. 
C)  produce in the short run but exit the industry in the long run. 
D)  shut down in the short run but expand capacity in the long run.

Question 12

One of the administrative bodies responsible for initiating actions on behalf of the U.S. government against individuals or companies violating antitrust laws is the

Accepted Answer

A)  Antitrust Division of the Justice Department. 
B)  Interstate Commerce Commission. 
C)  Federal Utility Commission. 
D)  Federal Reserve Bank. 
A)  Antitrust Division of the Justice Department. 
B)  Interstate Commerce Commission. 
C)  Federal Utility Commission. 
D)  Federal Reserve Bank.

Question 13

Monopolists differ from perfectly competitive firms

Accepted Answer

A)  on the cost and demand sides of the profit equation. 
B)  on the cost side of the profit equation alone. 
C)  on the demand side of the profit equation alone. 
D)  on neither the cost nor demand sides of the profit equation. 
A)  on the cost and demand sides of the profit equation. 
B)  on the cost side of the profit equation alone. 
C)  on the demand side of the profit equation alone. 
D)  on neither the cost nor demand sides of the profit equation.

Question 14

Refer to the information provided in Figure 13.11 below to answer the question(s) that follow.   Figure 13.11
-Refer to Figure 13.11. Suppose a monopolist faces the demand and costs in the figure and is able to perfectly price discriminate. What is the societal loss from having a monopoly instead of a perfectly competitive industry supplying widgets?

Accepted Answer

A)  $0 
B)  $4,000 
C)  $16,000 
D)  Indeterminate from the given information. 
A)  $0 
B)  $4,000 
C)  $16,000 
D)  Indeterminate from the given information.

Question 15

Refer to the information provided in Figure 13.3 below to answer the question(s) that follow.   Figure 13.3
-Refer to Figure 13.3. The marginal revenue of the sixth pound of burritos is

Accepted Answer

A)  $9. 
B)  $14. 
C)  $20. 
D)  $84. 
A)  $9. 
B)  $14. 
C)  $20. 
D)  $84.

Question 16

The notion that the government becomes the tool of the rent seeker and makes the allocation of resources even less efficient than before is known as ________ and is described in ________.

Accepted Answer

A)  rent-seeking; public choice theory 
B)  government failure; public choice theory 
C)  collusion; conspiracy theory 
D)  discrimination; conspiracy theory 
A)  rent-seeking; public choice theory 
B)  government failure; public choice theory 
C)  collusion; conspiracy theory 
D)  discrimination; conspiracy theory

Question 17

Barriers to entry include economies of scale and network effects.

Accepted Answer

A) True 
 B)False

Question 18

Firms in imperfectly competitive industries are price takers.

Accepted Answer

A) True 
 B)False

Question 19

When a demand curve is a downward sloping straight line, the slope of the demand curve is ________ the marginal revenue curve.

Accepted Answer

A)  always equal to the slope of 
B)  the same as the slope of 
C)  half as steep as 
D)  twice as steep as 
A)  always equal to the slope of 
B)  the same as the slope of 
C)  half as steep as 
D)  twice as steep as

Question 20

Government failure

Accepted Answer

A)  leads to a more efficient allocation of resources. 
B)  leads to a less efficient allocation of resources. 
C)  occurs because households or firms do not act in their own self‐interest. 
D)  occurs because government officials do not act in their own self‐interest. 
A)  leads to a more efficient allocation of resources. 
B)  leads to a less efficient allocation of resources. 
C)  occurs because households or firms do not act in their own self‐interest. 
D)  occurs because government officials do not act in their own self‐interest.

For a non-discriminating monopolist to sell one more unit, it must

Refer to the information provided in Figure 13.4 below to answer the question(s) that follow. Figure 13.4 -Refer to Figure 13.4. The ________ level of output for this monopolist is 22 units of output.

A firm must be able to ________ competition if it is to exercise control over the price of its product.

Related to the Economics in Practice on page 281: The foreign visitors to the temples of Laos are typically much richer than the local Laotians. This tends to make the foreign visitors ________ buyers when it comes to ticket prices to enter the temples.

The rule of reason is the criterion introduced by the courts for determining whether a firm's action was illegal under the Clayton Act.

Assuming demand is linear, the shape of a monopolist's total revenue schedule is a

We call a market where there is only one producer of a good or service a monopoly.

Monopolies, oligopolies, and monopolistic competitive industries all

Because the monopolist is the sole producer of a good, it can never incur a loss.

Refer to the information provided in Figure 13.1 below to answer the question that follows. Figure 13.1 -Refer to Figure 13.1. The demand curve for insulin is most likely represented by

One of the administrative bodies responsible for initiating actions on behalf of the U.S. government against individuals or companies violating antitrust laws is the

Monopolists differ from perfectly competitive firms

Refer to the information provided in Figure 13.3 below to answer the question(s) that follow. Figure 13.3 -Refer to Figure 13.3. The marginal revenue of the sixth pound of burritos is

The notion that the government becomes the tool of the rent seeker and makes the allocation of resources even less efficient than before is known as and is described in .

Barriers to entry include economies of scale and network effects.

Firms in imperfectly competitive industries are price takers.

When a demand curve is a downward sloping straight line, the slope of the demand curve is ________ the marginal revenue curve.

Government failure

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand, Supply, and Market Equilibrium

Demand and Supply Applications

Elasticity

Household Behavior and Consumer Choice

The Production Process: the Behavior of Profit-Maximizing Firms

Short-Run Costs and Output Decisions

Long-Run Costs and Output Decisions

Input Demand: the Labor and Land Markets

Input Demand: the Capital Market and the Investment Decision

General Equilibrium and the Efficiency of Perfect Competition

Oligopoly

Monopolistic Competition

Externalities, Public Goods, and Common Resources

Uncertainty and Asymmetric Information

Income Distribution and Poverty

Public Finance: the Economics of Taxation

International Trade, Comparative Advantage, and Protectionism

Economic Growth in Developing Economies

Critical Thinking About Research

Filters

Exam 13: Monopoly and Antitrust Policy

For a non-discriminating monopolist to sell one more unit, it must

Refer to the information provided in Figure 13.4 below to answer the question(s) that follow. Figure 13.4 -Refer to Figure 13.4. The ________ level of output for this monopolist is 22 units of output.

A firm must be able to ________ competition if it is to exercise control over the price of its product.

Related to the Economics in Practice on page 281: The foreign visitors to the temples of Laos are typically much richer than the local Laotians. This tends to make the foreign visitors ________ buyers when it comes to ticket prices to enter the temples.

The rule of reason is the criterion introduced by the courts for determining whether a firm's action was illegal under the Clayton Act.

Assuming demand is linear, the shape of a monopolist's total revenue schedule is a

We call a market where there is only one producer of a good or service a monopoly.

Monopolies, oligopolies, and monopolistic competitive industries all

Because the monopolist is the sole producer of a good, it can never incur a loss.

Refer to the information provided in Figure 13.1 below to answer the question that follows. Figure 13.1 -Refer to Figure 13.1. The demand curve for insulin is most likely represented by

One of the administrative bodies responsible for initiating actions on behalf of the U.S. government against individuals or companies violating antitrust laws is the

Monopolists differ from perfectly competitive firms

Refer to the information provided in Figure 13.3 below to answer the question(s) that follow. Figure 13.3 -Refer to Figure 13.3. The marginal revenue of the sixth pound of burritos is

The notion that the government becomes the tool of the rent seeker and makes the allocation of resources even less efficient than before is known as ________ and is described in ________.

Barriers to entry include economies of scale and network effects.

Firms in imperfectly competitive industries are price takers.

When a demand curve is a downward sloping straight line, the slope of the demand curve is ________ the marginal revenue curve.

Government failure

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand, Supply, and Market Equilibrium

Demand and Supply Applications

Elasticity

Household Behavior and Consumer Choice

The Production Process: the Behavior of Profit-Maximizing Firms

Short-Run Costs and Output Decisions

Long-Run Costs and Output Decisions

Input Demand: the Labor and Land Markets

Input Demand: the Capital Market and the Investment Decision

General Equilibrium and the Efficiency of Perfect Competition

Oligopoly

Monopolistic Competition

Externalities, Public Goods, and Common Resources

Uncertainty and Asymmetric Information

Income Distribution and Poverty

Public Finance: the Economics of Taxation

International Trade, Comparative Advantage, and Protectionism

Economic Growth in Developing Economies

Critical Thinking About Research

Filters

The notion that the government becomes the tool of the rent seeker and makes the allocation of resources even less efficient than before is known as and is described in .