Question 1

The US government has registered _______ on behalf of business firms to Protect a particularly distinct element each has selected for its ability to aid consumers to easily _______.

Accepted Answer

A)  200,00 patents; license for use 
B)  800,000 trademarks; identify the source of goods 
C)  1 million copyright licenses; identify the authors of creative works 
D)  200,000 trade secrets; create a natural monopoly 
A)  200,00 patents; license for use 
B)  800,000 trademarks; identify the source of goods 
C)  1 million copyright licenses; identify the authors of creative works 
D)  200,000 trade secrets; create a natural monopoly B

Question 2

A monopolist is able to maximize its profits by

Accepted Answer

A)  setting the price at the level that will maximize its per-unit profit. 
B)  producing output where MR = MC and charging a price along the demand curve. 
C)  setting output at MR = MC and setting price at the demand curve's highest point. 
D)  producing maximum output where price is equal to its marginal cost. 
A)  setting the price at the level that will maximize its per-unit profit. 
B)  producing output where MR = MC and charging a price along the demand curve. 
C)  setting output at MR = MC and setting price at the demand curve's highest point. 
D)  producing maximum output where price is equal to its marginal cost. B

Question 3

The following figure shows the average cost curve, demand curve, and marginal revenue curve for a monopolist.
After maximizing profits, what does the firm's revenue equal?

Accepted Answer

A)  the area of rectangle ABGH 
B)  the area of rectangle BDEG 
C)  the area of rectangle BCFG 
D)  the area of rectangle ADEH 
A)  the area of rectangle ABGH 
B)  the area of rectangle BDEG 
C)  the area of rectangle BCFG 
D)  the area of rectangle ADEH D

Question 4

The following figure shows the average cost curve, demand curve, and marginal revenue curve for a monopolist.
After maximizing profits, what do the firm's profit's equal?

Accepted Answer

A)  the area of rectangle ABGH 
B)  the area of rectangle BDEG 
C)  the area of rectangle BCFG 
D)  the area of rectangle ADEH 
A)  the area of rectangle ABGH 
B)  the area of rectangle BDEG 
C)  the area of rectangle BCFG 
D)  the area of rectangle ADEH

Question 5

If a monopolist increases quantity by one unit, but sells the increased output at a slightly lower price,

Accepted Answer

A)  marginal revenue is affected by adding one additional unit sold at the new price. 
B)  all the previous units, which used to sell at a higher price, now sell for more. 
C)  the marginal revenue of selling a unit is more than the price of the unit. 
D)  because of higher output the marginal revenue curve is above the demand curve. 
A)  marginal revenue is affected by adding one additional unit sold at the new price. 
B)  all the previous units, which used to sell at a higher price, now sell for more. 
C)  the marginal revenue of selling a unit is more than the price of the unit. 
D)  because of higher output the marginal revenue curve is above the demand curve.

Question 6

The marginal revenue curve for a monopolist _______ the market demand curve.

Accepted Answer

A)  always rises above 
B)  always lies beneath 
C)  always runs parallel 
D)  always is the same 
A)  always rises above 
B)  always lies beneath 
C)  always runs parallel 
D)  always is the same

Question 7

For a pure monopoly to exist,

Accepted Answer

A)  there is a single seller in a particular industry 
B)  there is only one seller, therefore no industry 
C)  there are a few sellers in a given industry 
D)  there are limited sellers in a particular industry 
A)  there is a single seller in a particular industry 
B)  there is only one seller, therefore no industry 
C)  there are a few sellers in a given industry 
D)  there are limited sellers in a particular industry

Question 8

In the United States, a pharmaceutical company's exclusive patent rights last for

Accepted Answer

A)  20 years. 
B)  25 years. 
C)  10 years. 
D)  70 years. 
A)  20 years. 
B)  25 years. 
C)  10 years. 
D)  70 years.

Question 9

Refer to the table below. The information pertains to the demand curve and the average cost curve for a natural monopoly firm. What will the price be in this market?

Accepted Answer

A)  20 
B)  50 
C)  35 
D)  5 
A)  20 
B)  50 
C)  35 
D)  5

Question 10

The following figure shows the average cost curve, demand curve, and marginal revenue curve for a monopolist.
After maximizing profits, what do the firm's costs equal?

Accepted Answer

A)  the area of rectangle ABGH 
B)  the area of rectangle BDEG 
C)  the area of rectangle ACFH 
D)  the area of rectangle ADEH 
A)  the area of rectangle ABGH 
B)  the area of rectangle BDEG 
C)  the area of rectangle ACFH 
D)  the area of rectangle ADEH

Question 11

Following the assumption that firms maximize profits, how will the price and output policy of an unregulated monopolist compare with ideal market efficiency?

Accepted Answer

A)  output will be too small and its price too high. 
B)  output will be too large and its price too high. 
C)  output will be too small and its price too low. 
D)  output will be too large and its price too low. 
A)  output will be too small and its price too high. 
B)  output will be too large and its price too high. 
C)  output will be too small and its price too low. 
D)  output will be too large and its price too low.

Question 12

Which of the following will present the least amount of concern to a firm that has a monopoly over a particular industry?

Accepted Answer

A)  whether consumers will purchase its product 
B)  whether consumers will spend on different products 
C)  the competitive actions of other business firms 
D)  barriers to entry and competitors' patent protection 
A)  whether consumers will purchase its product 
B)  whether consumers will spend on different products 
C)  the competitive actions of other business firms 
D)  barriers to entry and competitors' patent protection

Question 13

The following table shows a monopolist's demand curve and cost information for the production of its good. What price will it charge?

Accepted Answer

A)  $13 
B)  $15 
C)  $11 
D)  $12 
A)  $13 
B)  $15 
C)  $11 
D)  $12

Question 14

The table below shows a monopolist's demand curve and cost information for the production of its good. What quantity will it produce?

Accepted Answer

A)  1,400 
B)  1,300 
C)  1,100 
D)  1,000 
A)  1,400 
B)  1,300 
C)  1,100 
D)  1,000

Question 15

The following graph shows the demand curve for a good and the long run average cost curve for a typical firm in this market.
If the government does not intervene in the market, then

Accepted Answer

A)  there will be many firms in this market, all of whom will take the market price as given and produce where price equals marginal cost 
B)  there will only be 1 firm in this market, and they will produce where marginal revenue equals marginal cost 
C)  there will only be 1 firm in this market, and they will take the price as given and produce where price equals marginal cost 
D)  no firms will enter this market 
A)  there will be many firms in this market, all of whom will take the market price as given and produce where price equals marginal cost 
B)  there will only be 1 firm in this market, and they will produce where marginal revenue equals marginal cost 
C)  there will only be 1 firm in this market, and they will take the price as given and produce where price equals marginal cost 
D)  no firms will enter this market

Question 16

When a firm pursues a predatory pricing strategy, it does so

Accepted Answer

A)  to hire more staff to lower unemployment. 
B)  to increase supply to benefit consumers. 
C)  to maximize profits in the long run. 
D)  to discourage short run competition. 
A)  to hire more staff to lower unemployment. 
B)  to increase supply to benefit consumers. 
C)  to maximize profits in the long run. 
D)  to discourage short run competition.

Question 17

The total revenue curve for a monopolist will

Accepted Answer

A)  start high, rise, and then decline. 
B)  start low, decline, and then rise. 
C)  start high, decline, and then rise. 
D)  start low, rise, and then decline. 
A)  start high, rise, and then decline. 
B)  start low, decline, and then rise. 
C)  start high, decline, and then rise. 
D)  start low, rise, and then decline.

Question 18

Roughly speaking, patent law covers _______ and _______ law protects an author's original books.

Accepted Answer

A)  original inventive creations; copyright 
B)  trade secrets; trademark 
C)  all inventions; trademark 
D)  original audiovisual creations; copyright 
A)  original inventive creations; copyright 
B)  trade secrets; trademark 
C)  all inventions; trademark 
D)  original audiovisual creations; copyright

Question 19

Copyright protection legislation provides protection for original works

Accepted Answer

A)  during the author's life plus 70 years 
B)  during the author's life plus 20 years 
C)  until the author is 70 years of age 
D)  until the author is 75 years of age 
A)  during the author's life plus 70 years 
B)  during the author's life plus 20 years 
C)  until the author is 70 years of age 
D)  until the author is 75 years of age

Question 20

The demand curve perceived by a perfectly competitive firm

Accepted Answer

A)  shows that such a firm is a price-maker 
B)  shows economies of scale over a large range of output 
C)  is horizontal 
D)  all of the above 
A)  shows that such a firm is a price-maker 
B)  shows economies of scale over a large range of output 
C)  is horizontal 
D)  all of the above

The US government has registered _ on behalf of business firms to Protect a particularly distinct element each has selected for its ability to aid consumers to easily _.

A monopolist is able to maximize its profits by

The following figure shows the average cost curve, demand curve, and marginal revenue curve for a monopolist. After maximizing profits, what does the firm's revenue equal?

The following figure shows the average cost curve, demand curve, and marginal revenue curve for a monopolist. After maximizing profits, what do the firm's profit's equal?

If a monopolist increases quantity by one unit, but sells the increased output at a slightly lower price,

The marginal revenue curve for a monopolist _______ the market demand curve.

For a pure monopoly to exist,

In the United States, a pharmaceutical company's exclusive patent rights last for

Refer to the table below. The information pertains to the demand curve and the average cost curve for a natural monopoly firm. What will the price be in this market?

The following figure shows the average cost curve, demand curve, and marginal revenue curve for a monopolist. After maximizing profits, what do the firm's costs equal?

Following the assumption that firms maximize profits, how will the price and output policy of an unregulated monopolist compare with ideal market efficiency?

Which of the following will present the least amount of concern to a firm that has a monopoly over a particular industry?

The following table shows a monopolist's demand curve and cost information for the production of its good. What price will it charge?

The table below shows a monopolist's demand curve and cost information for the production of its good. What quantity will it produce?

The following graph shows the demand curve for a good and the long run average cost curve for a typical firm in this market. If the government does not intervene in the market, then

When a firm pursues a predatory pricing strategy, it does so

The total revenue curve for a monopolist will

Roughly speaking, patent law covers _ and _ law protects an author's original books.

Copyright protection legislation provides protection for original works

The demand curve perceived by a perfectly competitive firm

Welcome to Economics

Choice in a World of Scarcity

Demand and Supply

Labor and Financial Markets

Elasticity

Consumer Choices

Cost and Industry Structure

Perfect Competition

Monopolistic Competition and Oligopoly

Monopoly and Antitrust Policy

Environmental Protection and Negative Externalities

Positive Externalities and Public Goods

Poverty and Economic Inequality

Issues in Labor Markets: Unions, Discrimination, Immigration

Information, Risk, and Insurance

Financial Markets

Public Economy

International Trade

Globalization and Protectionism

Filters

Exam 9: Monopoly

The US government has registered _______ on behalf of business firms to Protect a particularly distinct element each has selected for its ability to aid consumers to easily _______.

A monopolist is able to maximize its profits by

The following figure shows the average cost curve, demand curve, and marginal revenue curve for a monopolist. After maximizing profits, what does the firm's revenue equal?

The following figure shows the average cost curve, demand curve, and marginal revenue curve for a monopolist. After maximizing profits, what do the firm's profit's equal?

If a monopolist increases quantity by one unit, but sells the increased output at a slightly lower price,

The marginal revenue curve for a monopolist _______ the market demand curve.

For a pure monopoly to exist,

In the United States, a pharmaceutical company's exclusive patent rights last for

Refer to the table below. The information pertains to the demand curve and the average cost curve for a natural monopoly firm. What will the price be in this market?

The following figure shows the average cost curve, demand curve, and marginal revenue curve for a monopolist. After maximizing profits, what do the firm's costs equal?

Following the assumption that firms maximize profits, how will the price and output policy of an unregulated monopolist compare with ideal market efficiency?

Which of the following will present the least amount of concern to a firm that has a monopoly over a particular industry?

The following table shows a monopolist's demand curve and cost information for the production of its good. What price will it charge?

The table below shows a monopolist's demand curve and cost information for the production of its good. What quantity will it produce?

The following graph shows the demand curve for a good and the long run average cost curve for a typical firm in this market. If the government does not intervene in the market, then

When a firm pursues a predatory pricing strategy, it does so

The total revenue curve for a monopolist will

Roughly speaking, patent law covers _______ and _______ law protects an author's original books.

Copyright protection legislation provides protection for original works

The demand curve perceived by a perfectly competitive firm

Welcome to Economics

Choice in a World of Scarcity

Demand and Supply

Labor and Financial Markets

Elasticity

Consumer Choices

Cost and Industry Structure

Perfect Competition

Monopolistic Competition and Oligopoly

Monopoly and Antitrust Policy

Environmental Protection and Negative Externalities

Positive Externalities and Public Goods

Poverty and Economic Inequality

Issues in Labor Markets: Unions, Discrimination, Immigration

Information, Risk, and Insurance

Financial Markets

Public Economy

International Trade

Globalization and Protectionism

Filters

The US government has registered _ on behalf of business firms to Protect a particularly distinct element each has selected for its ability to aid consumers to easily _.

Roughly speaking, patent law covers _ and _ law protects an author's original books.