Question 1

-For the unregulated, single-price monopoly shown in the figure above, when its profit is maximized, output will be

Accepted Answer

A)  4 units per year and the price will be $6. 
B)  4 units per year and the price will be $4. 
C)  6 units per year and the price will be $4. 
D)  None of the above answers is correct. 
A)  4 units per year and the price will be $6. 
B)  4 units per year and the price will be $4. 
C)  6 units per year and the price will be $4. 
D)  None of the above answers is correct.

Question 2

-The motel whose costs are given in the table above has total fixed costs equal to

Accepted Answer

A)  $0. 
B)  $100. 
C)  $200. 
D)  $201. 
A)  $0. 
B)  $100. 
C)  $200. 
D)  $201.

Question 3

Which of the following statements regarding perfect price discrimination is FALSE?

Accepted Answer

A)  Only part of consumer surplus is captured by the firm as producer surplus. 
B)  For the firm, the market demand curve becomes the firm's marginal revenue curve. 
C)  The monopoly produces the output at which the marginal revenue equals the marginal cost. 
D)  No deadweight loss is created. 
A)  Only part of consumer surplus is captured by the firm as producer surplus. 
B)  For the firm, the market demand curve becomes the firm's marginal revenue curve. 
C)  The monopoly produces the output at which the marginal revenue equals the marginal cost. 
D)  No deadweight loss is created.

Question 4

For a monopoly, at the level of output where marginal revenue equals zero, then the

Accepted Answer

A)  firm earns no revenue. 
B)  price elasticity of demand at this amount of output is zero. 
C)  firm has maximized total revenue. 
D)  firm is a price taker. 
A)  firm earns no revenue. 
B)  price elasticity of demand at this amount of output is zero. 
C)  firm has maximized total revenue. 
D)  firm is a price taker.

Question 5

Which of the following statements is TRUE?

Accepted Answer

A)  Perfectly competitive markets are efficient, but monopoly markets never are efficient. 
B)  Perfectly competitive markets always reach equilibrium but monopoly markets never reach equilibrium. 
C)  Perfect price discriminating monopolists can eliminate all deadweight losses and achieve efficiency. 
D)  All the above statements are true. 
A)  Perfectly competitive markets are efficient, but monopoly markets never are efficient. 
B)  Perfectly competitive markets always reach equilibrium but monopoly markets never reach equilibrium. 
C)  Perfect price discriminating monopolists can eliminate all deadweight losses and achieve efficiency. 
D)  All the above statements are true.

Question 6

A monopoly can price discriminate between two groups of consumers if each group has

Accepted Answer

A)  a large consumer surplus. 
B)  a different willingness to pay. 
C)  the same willingness to pay. 
D)  the ability to resell the good to the other group. 
A)  a large consumer surplus. 
B)  a different willingness to pay. 
C)  the same willingness to pay. 
D)  the ability to resell the good to the other group.

Question 7

Which of the following statements regarding a marginal-cost pricing rule for a natural monopoly is WRONG?

Accepted Answer

A)  It maximizes total surplus in a regulated industry. 
B)  The firm produces the efficient quantity. 
C)  The firm's price equals its marginal cost. 
D)  The firm makes an economic profit. 
A)  It maximizes total surplus in a regulated industry. 
B)  The firm produces the efficient quantity. 
C)  The firm's price equals its marginal cost. 
D)  The firm makes an economic profit.

Question 8

-The unregulated, single-price monopolist illustrated in the figure above will set a price of

Accepted Answer

A)  $2.00 per unit. 
B)  $6.00 per unit. 
C)  $8.00 per unit. 
D)  $10.00 per unit. 
A)  $2.00 per unit. 
B)  $6.00 per unit. 
C)  $8.00 per unit. 
D)  $10.00 per unit.

Question 9

When comparing a single-price monopoly to a perfectly competitive market with the same costs

Accepted Answer

A)  both the monopoly's output and price are lower than the perfectly competitive market's output and price. 
B)  both the monopoly's output and price are higher than the perfectly competitive market's output and price. 
C)  the monopoly's output is higher and the monopoly's price is lower than the perfectly competitive market's output and price. 
D)  the monopoly's output is smaller and the monopoly's price is higher than the perfectly competitive market's output and price. 
A)  both the monopoly's output and price are lower than the perfectly competitive market's output and price. 
B)  both the monopoly's output and price are higher than the perfectly competitive market's output and price. 
C)  the monopoly's output is higher and the monopoly's price is lower than the perfectly competitive market's output and price. 
D)  the monopoly's output is smaller and the monopoly's price is higher than the perfectly competitive market's output and price.

Question 10

Compare the outcome in a market with a single-price monopoly to that in a perfectly competitive market.

Accepted Answer

The monopoly charges a higher price and

Question 11

If a monopolist can perfectly price discriminate, it will

Accepted Answer

A)  charge the same price for each unit sold. 
B)  produce until price elasticity of demand equals one. 
C)  not be concerned with the market demand. 
D)  charge a different price for every unit sold. 
A)  charge the same price for each unit sold. 
B)  produce until price elasticity of demand equals one. 
C)  not be concerned with the market demand. 
D)  charge a different price for every unit sold.

Question 12

-If the natural monopoly shown in the figure above is unregulated, then it will charge a price of

Accepted Answer

A)  $2. 
B)  $4. 
C)  $5. 
D)  $6. 
A)  $2. 
B)  $4. 
C)  $5. 
D)  $6.

Question 13

A monopolist maximizes its profit by producing the amount of output that sets

Accepted Answer

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

Question 14

A single-price monopolist maximizes profits by producing the output at which

Accepted Answer

A)  price equals marginal cost. 
B)  price equals marginal revenue. 
C)  marginal revenue equals marginal cost. 
D)  marginal cost equals average cost. 
A)  price equals marginal cost. 
B)  price equals marginal revenue. 
C)  marginal revenue equals marginal cost. 
D)  marginal cost equals average cost.

Question 15

________ is defined as any attempt to capture consumer surplus, producer surplus or economic profit.

Accepted Answer

A)  Search 
B)  Rent seeking 
C)  Maximizing monopoly profits 
D)  Price discrimination 
A)  Search 
B)  Rent seeking 
C)  Maximizing monopoly profits 
D)  Price discrimination

Question 16

-The table above gives the demand for a monopolist's output. Between which two quantities is marginal revenue equal to 0?

Accepted Answer

A)  4 and 5 
B)  3 and 4 
C)  2 and 3 
D)  1 and 2 
A)  4 and 5 
B)  3 and 4 
C)  2 and 3 
D)  1 and 2

Question 17

Price discrimination

Accepted Answer

A)  converts consumer surplus into producer surplus. 
B)  converts producer surplus into economic profit. 
C)  maximizes the difference between consumer surplus and producer surplus. 
D)  converts deadweight loss into consumer surplus. 
A)  converts consumer surplus into producer surplus. 
B)  converts producer surplus into economic profit. 
C)  maximizes the difference between consumer surplus and producer surplus. 
D)  converts deadweight loss into consumer surplus.

Question 18

-The demand schedule for a monopolist is given in the above table. Calculate the marginal revenue.

Accepted Answer

@#IMG-DLM& The compl

Question 19

Which of the following is NOT necessary for a firm to engage in price discrimination?

Accepted Answer

A)  The firm must be able to identify different types of buyers. 
B)  The firm must be able to separate buyers by preventing resales from one customer to another. 
C)  The firm must produce output for different buyers at different costs. 
D)  The firm must sell a product that cannot be resold. 
A)  The firm must be able to identify different types of buyers. 
B)  The firm must be able to separate buyers by preventing resales from one customer to another. 
C)  The firm must produce output for different buyers at different costs. 
D)  The firm must sell a product that cannot be resold.

Question 20

If a marginal cost pricing rule is imposed on the firm in the figure above, the firm will produce

Accepted Answer

A)  5 units. 
B)  20 units. 
C)  30 units. 
D)  40 units. 
A)  5 units. 
B)  20 units. 
C)  30 units. 
D)  40 units.

-For the unregulated, single-price monopoly shown in the figure above, when its profit is maximized, output will be

-The motel whose costs are given in the table above has total fixed costs equal to

Which of the following statements regarding perfect price discrimination is FALSE?

For a monopoly, at the level of output where marginal revenue equals zero, then the

Which of the following statements is TRUE?

A monopoly can price discriminate between two groups of consumers if each group has

Which of the following statements regarding a marginal-cost pricing rule for a natural monopoly is WRONG?

-The unregulated, single-price monopolist illustrated in the figure above will set a price of

When comparing a single-price monopoly to a perfectly competitive market with the same costs

Compare the outcome in a market with a single-price monopoly to that in a perfectly competitive market.

If a monopolist can perfectly price discriminate, it will

-If the natural monopoly shown in the figure above is unregulated, then it will charge a price of

A monopolist maximizes its profit by producing the amount of output that sets

A single-price monopolist maximizes profits by producing the output at which

________ is defined as any attempt to capture consumer surplus, producer surplus or economic profit.

-The table above gives the demand for a monopolist's output. Between which two quantities is marginal revenue equal to 0?

Price discrimination

-The demand schedule for a monopolist is given in the above table. Calculate the marginal revenue.

Which of the following is NOT necessary for a firm to engage in price discrimination?

If a marginal cost pricing rule is imposed on the firm in the figure above, the firm will produce

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Organizing Production

Output and Costs

Perfect Competition

Monopolistic Competition

Oligopoly

Public Choices, Public Goods, and Healthcare

Externalities

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Filters

Exam 13: Monopoly

-For the unregulated, single-price monopoly shown in the figure above, when its profit is maximized, output will be

-The motel whose costs are given in the table above has total fixed costs equal to

Which of the following statements regarding perfect price discrimination is FALSE?

For a monopoly, at the level of output where marginal revenue equals zero, then the

Which of the following statements is TRUE?

A monopoly can price discriminate between two groups of consumers if each group has

Which of the following statements regarding a marginal-cost pricing rule for a natural monopoly is WRONG?

-The unregulated, single-price monopolist illustrated in the figure above will set a price of

When comparing a single-price monopoly to a perfectly competitive market with the same costs

Compare the outcome in a market with a single-price monopoly to that in a perfectly competitive market.

If a monopolist can perfectly price discriminate, it will

-If the natural monopoly shown in the figure above is unregulated, then it will charge a price of

A monopolist maximizes its profit by producing the amount of output that sets

A single-price monopolist maximizes profits by producing the output at which

________ is defined as any attempt to capture consumer surplus, producer surplus or economic profit.

-The table above gives the demand for a monopolist's output. Between which two quantities is marginal revenue equal to 0?

Price discrimination

-The demand schedule for a monopolist is given in the above table. Calculate the marginal revenue.

Which of the following is NOT necessary for a firm to engage in price discrimination?

If a marginal cost pricing rule is imposed on the firm in the figure above, the firm will produce

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Organizing Production

Output and Costs

Perfect Competition

Monopolistic Competition

Oligopoly

Public Choices, Public Goods, and Healthcare

Externalities

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Filters