Question 1

-The unregulated, single-price monopolist illustrated in the figure above will produce

Accepted Answer

A)  0 units per day. 
B)  4 units per day. 
C)  6 units per day. 
D)  9 units per day. 
A)  0 units per day. 
B)  4 units per day. 
C)  6 units per day. 
D)  9 units per day.

Question 2

-In the figure above, compared to a perfectly competitive industry with the same costs, a single-price, unregulated monopoly will raise the price by

Accepted Answer

A)  $2.00 per unit. 
B)  $4.00 per unit. 
C)  $6.00 per unit. 
D)  $8.00 per unit. 
A)  $2.00 per unit. 
B)  $4.00 per unit. 
C)  $6.00 per unit. 
D)  $8.00 per unit.

Question 3

When an average total cost pricing rule is enforced, average total cost equals

Accepted Answer

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

Question 4

-If an average cost pricing rule is imposed on the natural monopoly shown in the figure above, then it will produce

Accepted Answer

A)  2 million units. 
B)  3 million units. 
C)  4 million units. 
D)  5 million units. 
A)  2 million units. 
B)  3 million units. 
C)  4 million units. 
D)  5 million units.

Question 5

The capture theory of regulation implies that

Accepted Answer

A)  regulations promote the attainment of efficiency. 
B)  regulations promote the attainment of economic profit. 
C)  public officials favor voters over producers. 
D)  the demand for regulation is less elastic than the supply. 
A)  regulations promote the attainment of efficiency. 
B)  regulations promote the attainment of economic profit. 
C)  public officials favor voters over producers. 
D)  the demand for regulation is less elastic than the supply.

Question 6

Price cap regulation is a type of regulation that

Accepted Answer

A)  offers price subsidies to firms that comply with regulation guidelines. 
B)  is equivalent to rate of return. 
C)  sets the maximum price the firm can charge. 
D)  sets the minimum price the firm can charge. 
A)  offers price subsidies to firms that comply with regulation guidelines. 
B)  is equivalent to rate of return. 
C)  sets the maximum price the firm can charge. 
D)  sets the minimum price the firm can charge.

Question 7

What does the marginal revenue equal when a monopoly's total revenue is maximized? What is the elasticity of demand when the total revenue is maximized?

Accepted Answer

When the total revenue is at i

Question 8

-The table above shows the demand and costs for a single-price monopolist. When it maximizes its profit, the firm makes an economic profit of

Accepted Answer

A)  $15. 
B)  $25. 
C)  $40. 
D)  $45. 
A)  $15. 
B)  $25. 
C)  $40. 
D)  $45.

Question 9

A regulated monopoly facing average cost pricing rule will make the same profit as a firm in ________ market does in the long run.

Accepted Answer

A)  an unregulated monopoly 
B)  an oligopoly 
C)  a perfectly competitive 
D)  All of the above answers are correct. 
A)  an unregulated monopoly 
B)  an oligopoly 
C)  a perfectly competitive 
D)  All of the above answers are correct.

Question 10

-Consider the market for cable television, a natural monopoly, shown in the figure above. If the regulator imposes an average cost pricing rule, the firm provides service to

Accepted Answer

A)  3.5 million households. 
B)  6 million households. 
C)  10.5 million households. 
D)  12.5 million households. 
A)  3.5 million households. 
B)  6 million households. 
C)  10.5 million households. 
D)  12.5 million households.

Question 11

Which creates a larger deadweight loss, perfect competition or a single-price monopoly?

Accepted Answer

The single-price monopoly crea

Question 12

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

Accepted Answer

A)  It sets price equal to average total cost. 
B)  It is efficient. 
C)  The firm makes zero economic profit. 
D)  More output is produced than if the firm maximized profit. 
A)  It sets price equal to average total cost. 
B)  It is efficient. 
C)  The firm makes zero economic profit. 
D)  More output is produced than if the firm maximized profit.

Question 13

If economies of scale allow one cable TV firm to supply the entire market at the lowest possible cost, then this company is

Accepted Answer

A)  a natural monopoly. 
B)  not a monopoly. 
C)  a monopoly, but not a natural monopoly. 
D)  a legal monopoly. 
A)  a natural monopoly. 
B)  not a monopoly. 
C)  a monopoly, but not a natural monopoly. 
D)  a legal monopoly.

Question 14

-For the monopoly shown in the figure above, the profit maximizing price is ________ per unit.

Accepted Answer

A)  $10 
B)  $20 
C)  $30 
D)  $50 
A)  $10 
B)  $20 
C)  $30 
D)  $50

Question 15

A single-price monopolist

Accepted Answer

A)  sets its price where its demand is inelastic. 
B)  can always increase its profits by increasing its price. 
C)  has its marginal revenue less than its price. 
D)  is guaranteed an economic profit. 
A)  sets its price where its demand is inelastic. 
B)  can always increase its profits by increasing its price. 
C)  has its marginal revenue less than its price. 
D)  is guaranteed an economic profit.

Question 16

-In the figure above, if the market is a single-price monopoly rather than a perfectly competitive industry, the transfer of consumer surplus from consumers to the producer is the area of

Accepted Answer

A)  trapezoid beic. 
B)  triangle abe. 
C)  rectangle begd. 
D)  rectangle befc. 
A)  trapezoid beic. 
B)  triangle abe. 
C)  rectangle begd. 
D)  rectangle befc.

Question 17

-The unregulated, single-price monopoly shown in the figure above will sell

Accepted Answer

A)  less than 30 tickets. 
B)  30 tickets. 
C)  50 tickets. 
D)  100 tickets. 
A)  less than 30 tickets. 
B)  30 tickets. 
C)  50 tickets. 
D)  100 tickets.

Question 18

-An unregulated, single-price monopoly is shown in the figure above. If fixed cost is $20, the monopoly's total costs when it is maximizing its profit will be

Accepted Answer

A)  $30. 
B)  $40. 
C)  $80. 
D)  $140. 
A)  $30. 
B)  $40. 
C)  $80. 
D)  $140.

Question 19

-Consider the market for cable television in the figure above. This graph depicts a natural monopoly because the

Accepted Answer

A)  marginal cost curve is constant. 
B)  demand curve is downward sloping. 
C)  average cost curve is declining as it crosses the demand curve. 
D)  marginal revenue curve is downward sloping. 
A)  marginal cost curve is constant. 
B)  demand curve is downward sloping. 
C)  average cost curve is declining as it crosses the demand curve. 
D)  marginal revenue curve is downward sloping.

Question 20

-The figure above shows the demand and cost curves for a single-price monopoly. What economic profit does this firm make?

Accepted Answer

A)  zero 
B)  $600 
C)  $400 
D)  $200 
A)  zero 
B)  $600 
C)  $400 
D)  $200

-The unregulated, single-price monopolist illustrated in the figure above will produce

-In the figure above, compared to a perfectly competitive industry with the same costs, a single-price, unregulated monopoly will raise the price by

When an average total cost pricing rule is enforced, average total cost equals

-If an average cost pricing rule is imposed on the natural monopoly shown in the figure above, then it will produce

The capture theory of regulation implies that

Price cap regulation is a type of regulation that

What does the marginal revenue equal when a monopoly's total revenue is maximized? What is the elasticity of demand when the total revenue is maximized?

-The table above shows the demand and costs for a single-price monopolist. When it maximizes its profit, the firm makes an economic profit of

A regulated monopoly facing average cost pricing rule will make the same profit as a firm in ________ market does in the long run.

-Consider the market for cable television, a natural monopoly, shown in the figure above. If the regulator imposes an average cost pricing rule, the firm provides service to

Which creates a larger deadweight loss, perfect competition or a single-price monopoly?

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

If economies of scale allow one cable TV firm to supply the entire market at the lowest possible cost, then this company is

-For the monopoly shown in the figure above, the profit maximizing price is ________ per unit.

A single-price monopolist

-In the figure above, if the market is a single-price monopoly rather than a perfectly competitive industry, the transfer of consumer surplus from consumers to the producer is the area of

-The unregulated, single-price monopoly shown in the figure above will sell

-An unregulated, single-price monopoly is shown in the figure above. If fixed cost is $20, the monopoly's total costs when it is maximizing its profit will be

-Consider the market for cable television in the figure above. This graph depicts a natural monopoly because the

-The figure above shows the demand and cost curves for a single-price monopoly. What economic profit does this firm make?

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

-The unregulated, single-price monopolist illustrated in the figure above will produce

-In the figure above, compared to a perfectly competitive industry with the same costs, a single-price, unregulated monopoly will raise the price by

When an average total cost pricing rule is enforced, average total cost equals

-If an average cost pricing rule is imposed on the natural monopoly shown in the figure above, then it will produce

The capture theory of regulation implies that

Price cap regulation is a type of regulation that

What does the marginal revenue equal when a monopoly's total revenue is maximized? What is the elasticity of demand when the total revenue is maximized?

-The table above shows the demand and costs for a single-price monopolist. When it maximizes its profit, the firm makes an economic profit of

A regulated monopoly facing average cost pricing rule will make the same profit as a firm in ________ market does in the long run.

-Consider the market for cable television, a natural monopoly, shown in the figure above. If the regulator imposes an average cost pricing rule, the firm provides service to

Which creates a larger deadweight loss, perfect competition or a single-price monopoly?

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

If economies of scale allow one cable TV firm to supply the entire market at the lowest possible cost, then this company is

-For the monopoly shown in the figure above, the profit maximizing price is ________ per unit.

A single-price monopolist

-In the figure above, if the market is a single-price monopoly rather than a perfectly competitive industry, the transfer of consumer surplus from consumers to the producer is the area of

-The unregulated, single-price monopoly shown in the figure above will sell

-An unregulated, single-price monopoly is shown in the figure above. If fixed cost is $20, the monopoly's total costs when it is maximizing its profit will be

-Consider the market for cable television in the figure above. This graph depicts a natural monopoly because the

-The figure above shows the demand and cost curves for a single-price monopoly. What economic profit does this firm make?

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