Exam 12: Pure Monopoly

Total Output Price Marginal Revenue Average Total Cost Marginal Cost 1 $100 $100 $100.00 $30 2 90 80 63.00 26 3 80 60 52.67 32 4 70 40 49.50 40 5 60 20 49.60 50 6 50 0 50.00 52 7 40 -20 52.29 66 8 30 -40 55.75 80 9 20 -60 60.67 100 10 10 -80 67.60 130 Refer to the data for a nondiscriminating monopolist.At its profit-maximizing output, this firm's total costs will be

A firm sells 99 units of output when price equals $10, and 100 units of output when price equals $9.Its marginal revenue for the 100th unit of output is negative.

A monopolist sells 6 units of a product per day at a unit price of $15.If it lowers the price to $14, its total revenue increases by $22.This implies that its sales quantity increases by

The problem with adopting a fair-return pricing policy for a natural monopoly is that

A monopolist, being the sole seller in a market, is assured of positive economic profits.

Many economists agree that government should deal with monopolists on a case-by-case basis.Which of the following is not a government policy option?

In the long-run equilibrium, a monopolist will earn zero economic profits.

The economic incentive for price discrimination is based upon

If a monopolist engages in price discrimination, it will

If a pure monopolist is operating in a range of output where demand is elastic,

If a pure monopolist is producing at that output where P = ATC, then

Which of the following is correct?

(Last Word) "Big Data"

Suppose that a pure monopolist can sell 5 units of output at $4 per unit and 6 units at $3.90 per unit.The monopolist will produce and sell the sixth unit if its marginal cost is

If marginal costs decrease and the MC curve shifts down, a typical monopolist will

"Price makers" refers to firms that

In most cases, a monopolist practicing price discrimination will end up earning less economic profits than a nondiscriminating monopolist.

If profits are maximized (or losses minimized), which of the following conditions is common to both unregulated monopoly and pure competition?

A profit-maximizing firm should shut down in the short run if the average revenue it receives is less than

For a monopolist to sell an output level of 10 units, the price must be $8.MR at this output level will be