Question 1

In response to a cost-reducing technological breakthrough in the production of its product, a profit-maximizing monopolist will normally

Accepted Answer

A) increase price and decrease production. 
B) not change its level of output or price. 
C) decrease the price it charges for its product. 
D) increase its output and practice price discrimination. 
A) increase price and decrease production. 
B) not change its level of output or price. 
C) decrease the price it charges for its product. 
D) increase its output and practice price discrimination.

Question 2

Refer to the two diagrams for individual firms. Figure 1 pertains to __________, while Figure 2 refers to ________.

Accepted Answer

A) an imperfectly competitive firm; a purely competitive firm 
B) a purely competitive firm; an imperfectly competitive firm 
C) an oligopolist; a monopolistically competitive firm 
D) a pure monopolist; a monopolistically competitive firm 
A) an imperfectly competitive firm; a purely competitive firm 
B) a purely competitive firm; an imperfectly competitive firm 
C) an oligopolist; a monopolistically competitive firm 
D) a pure monopolist; a monopolistically competitive firm

Question 3

Possible reasons for X-inefficiency include the following, except

Accepted Answer

A) managers having other goals besides maximizing profits. 
B) workers being poorly motivated or poorly supervised. 
C) costs of materials rising due to tight supply conditions. 
D) the firm being lethargic due to the absence of competition. 
A) managers having other goals besides maximizing profits. 
B) workers being poorly motivated or poorly supervised. 
C) costs of materials rising due to tight supply conditions. 
D) the firm being lethargic due to the absence of competition.

Question 4

Suppose that a pure monopolist can sell 47 units of output at $16 per unit and 48 units at $15.80 per unit. The marginal revenue of the 48th unit of output is

Accepted Answer

A) $15.80. 
B) $758.40 
C) $6.40. 
D) $0.20. 
A) $15.80. 
B) $758.40 
C) $6.40. 
D) $0.20.

Question 5

Refer to the demand and cost data for a pure monopolist given in the table. An unregulated, nondiscriminating monopolist would maximize profits at a price and quantity of

Accepted Answer

A) $250 and 2 units. 
B) $200 and 3 units. 
C) $150 and 4 units. 
D) $100 and 5 units. 
A) $250 and 2 units. 
B) $200 and 3 units. 
C) $150 and 4 units. 
D) $100 and 5 units.

Question 6

"Big data" collection by online firms about buyers and their behaviors allows the firms to practice

Accepted Answer

A) fair-return pricing. 
B) socially optimal pricing. 
C) price discrimination. 
D) price regulation. 
A) fair-return pricing. 
B) socially optimal pricing. 
C) price discrimination. 
D) price regulation.

Question 7

Based on the accompanying table, how many units would the given profit-maximizing nondiscriminating pure monopolist produce?

Accepted Answer

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

In response to a cost-reducing technological breakthrough in the production of its product, a profit-maximizing monopolist will normally

Refer to the two diagrams for individual firms. Figure 1 pertains to __, while Figure 2 refers to .

Possible reasons for X-inefficiency include the following, except

Suppose that a pure monopolist can sell 47 units of output at $16 per unit and 48 units at $15.80 per unit. The marginal revenue of the 48th unit of output is

Refer to the demand and cost data for a pure monopolist given in the table. An unregulated, nondiscriminating monopolist would maximize profits at a price and quantity of

"Big data" collection by online firms about buyers and their behaviors allows the firms to practice

Based on the accompanying table, how many units would the given profit-maximizing nondiscriminating pure monopolist produce?

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures Caused by Externalities Asymmetric Information

Public Goods, Public Choice, and Government Failure

Elasticity

Utility Maximization

Behavioral Economics

Businesses and the Costs of Production

Pure Competition in the Short Run

Pure Competition in the Long Run

Monopolistic Competition

Oligopoly and Strategic Behavior

Technology, RD, and Efficiency

The Demand for Resources

Wage Determination

Rent, Interest, and Profit

Natural Resource and Energy Economics

Public Finance: Expenditures and Taxes

Antitrust Policy and Regulation

Agriculture: Economics and Policy

Income Inequality, Poverty, and Discrimination

Health Care

Immigration

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

Filters

Exam 12: Pure Monopoly

In response to a cost-reducing technological breakthrough in the production of its product, a profit-maximizing monopolist will normally

Refer to the two diagrams for individual firms. Figure 1 pertains to __________, while Figure 2 refers to ________.

Possible reasons for X-inefficiency include the following, except

Suppose that a pure monopolist can sell 47 units of output at $16 per unit and 48 units at $15.80 per unit. The marginal revenue of the 48th unit of output is

Refer to the demand and cost data for a pure monopolist given in the table. An unregulated, nondiscriminating monopolist would maximize profits at a price and quantity of

"Big data" collection by online firms about buyers and their behaviors allows the firms to practice

Based on the accompanying table, how many units would the given profit-maximizing nondiscriminating pure monopolist produce?

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures Caused by Externalities Asymmetric Information

Public Goods, Public Choice, and Government Failure

Elasticity

Utility Maximization

Behavioral Economics

Businesses and the Costs of Production

Pure Competition in the Short Run

Pure Competition in the Long Run

Monopolistic Competition

Oligopoly and Strategic Behavior

Technology, RD, and Efficiency

The Demand for Resources

Wage Determination

Rent, Interest, and Profit

Natural Resource and Energy Economics

Public Finance: Expenditures and Taxes

Antitrust Policy and Regulation

Agriculture: Economics and Policy

Income Inequality, Poverty, and Discrimination

Health Care

Immigration

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

Filters

Refer to the two diagrams for individual firms. Figure 1 pertains to __, while Figure 2 refers to .