Question 1

The marginal revenue curve is the same as the demand curve for the

Accepted Answer

A) monopolistic competitor 
B) perfect price discriminator 
C) oligopolistic price leader 
D) single price monopoly 
E) export producer 
A) monopolistic competitor 
B) perfect price discriminator 
C) oligopolistic price leader 
D) single price monopoly 
E) export producer

Question 2

-The firm in Figure 10-7 does not practice price discrimination.Its price and output will be

Accepted Answer

A) $300 and 175 
B) $50 and 125 
C) $250 and 125 
D) $180 and 160 
E) none of these since the firm should immediately shut down in the short run 
A) $300 and 175 
B) $50 and 125 
C) $250 and 125 
D) $180 and 160 
E) none of these since the firm should immediately shut down in the short run

Question 3

Patents and copyrights

Accepted Answer

A) are illegal in the United States 
B) reduce barriers to entry in markets 
C) protect small firms from large firms 
D) lead to increased output and decreased prices 
E) provide incentives for firms to engage in research and development 
A) are illegal in the United States 
B) reduce barriers to entry in markets 
C) protect small firms from large firms 
D) lead to increased output and decreased prices 
E) provide incentives for firms to engage in research and development

Question 4

Where is the monopoly supply curve located?

Accepted Answer

A) above the marginal revenue curve 
B) below the marginal revenue curve 
C) to the right of the marginal cost curve 
D) coincident with the marginal cost curve 
E) there is no monopoly supply curve 
A) above the marginal revenue curve 
B) below the marginal revenue curve 
C) to the right of the marginal cost curve 
D) coincident with the marginal cost curve 
E) there is no monopoly supply curve

Question 5

A firm charges each customer the highest price that customer will pay for the marginal unit under

Accepted Answer

A) perfect competition 
B) oligopoly 
C) monopolistic competition 
D) single-price monopoly 
E) perfect price discrimination 
A) perfect competition 
B) oligopoly 
C) monopolistic competition 
D) single-price monopoly 
E) perfect price discrimination

Question 6

A monopoly is a

Accepted Answer

A) large number of producers each with a small share of the total market output 
B) single seller of a product that typically has no close substitutes 
C) small group of producers with similar products 
D) single buyer of an input into production 
E) group of firms with incentives to cooperate 
A) large number of producers each with a small share of the total market output 
B) single seller of a product that typically has no close substitutes 
C) small group of producers with similar products 
D) single buyer of an input into production 
E) group of firms with incentives to cooperate

Question 7

A monopolist will

Accepted Answer

A) never produce at an output level where marginal revenue is positive 
B) never produce at an output level where marginal revenue is constant 
C) never produce at an output level where marginal revenue is negative 
D) never produce at an output level where marginal cost is positive 
E) ignore marginal revenue as long as average revenue is positive 
A) never produce at an output level where marginal revenue is positive 
B) never produce at an output level where marginal revenue is constant 
C) never produce at an output level where marginal revenue is negative 
D) never produce at an output level where marginal cost is positive 
E) ignore marginal revenue as long as average revenue is positive

Question 8

Suppose that a monopoly is earning economic profits in the short run.As a result,

Accepted Answer

A) no new firms will enter the industry because of barriers to entry 
B) the monopolist will increase its price and lower its output 
C) the market supply curve will shift to the right 
D) profits will fall as new firms enter the market 
E) the market demand curve will shift to the left 
A) no new firms will enter the industry because of barriers to entry 
B) the monopolist will increase its price and lower its output 
C) the market supply curve will shift to the right 
D) profits will fall as new firms enter the market 
E) the market demand curve will shift to the left

Question 9

-How much profit will the profit-maximizing level of output for the non-discriminating monopolist in Figure 10-3 yield?

Accepted Answer

A) $10 
B) $20 
C) $30 
D) $40 
E) $50 
A) $10 
B) $20 
C) $30 
D) $40 
E) $50

Question 10

When the demand for a monopolist's output falls,the monopolist will

Accepted Answer

A) not change the price,since it has no competition. 
B) raise the price in order to compensate for the lower demand. 
C) charge a lower price. 
D) cut its costs in order to maintain its profit margin. 
A) not change the price,since it has no competition. 
B) raise the price in order to compensate for the lower demand. 
C) charge a lower price. 
D) cut its costs in order to maintain its profit margin.

Question 11

-Figure 10-5 shows the cost and demand curves facing a monopolist whose marginal cost is constant.The firm has no fixed costs.If it does not discriminate,it will produce

Accepted Answer

A) Q** units and charge price P' 
B) Q* units and charge price P 
C) between Q* and Q** units while charging a price between P and P' 
D) between 0 and Q* units while charging price P 
E) Q* units and charge price P' 
A) Q** units and charge price P' 
B) Q* units and charge price P 
C) between Q* and Q** units while charging a price between P and P' 
D) between 0 and Q* units while charging price P 
E) Q* units and charge price P'

Question 12

A natural monopoly exists when

Accepted Answer

A) economies of scale are negligible 
B) there are a few dominant firms that corner the market 
C) one firm can produce the market output at lower average cost than two or more firms can 
D) barriers to entry are low 
E) only a few firms can minimize cost and maximize profit 
A) economies of scale are negligible 
B) there are a few dominant firms that corner the market 
C) one firm can produce the market output at lower average cost than two or more firms can 
D) barriers to entry are low 
E) only a few firms can minimize cost and maximize profit

Question 13

All of the following are forms of price discrimination,except one.Which is the exception?

Accepted Answer

A) cents-off coupons for use at the grocery store 
B) different prices for movie tickets for children and adults 
C) making airline reservations 30 days in advance and receiving a lower rate 
D) different prices for prescription drugs for senior citizens and others 
E) different prices for "2nd day delivery" and "next day air delivery" 
A) cents-off coupons for use at the grocery store 
B) different prices for movie tickets for children and adults 
C) making airline reservations 30 days in advance and receiving a lower rate 
D) different prices for prescription drugs for senior citizens and others 
E) different prices for "2nd day delivery" and "next day air delivery"

Question 14

In the long run,

Accepted Answer

A) monopolies will not incur economic losses 
B) the demand curve facing the firm is horizontal under monopoly 
C) economic profit and loss determines entry and exit into monopoly markets 
D) competition always destroys monopoly 
E) government always regulates monopoly 
A) monopolies will not incur economic losses 
B) the demand curve facing the firm is horizontal under monopoly 
C) economic profit and loss determines entry and exit into monopoly markets 
D) competition always destroys monopoly 
E) government always regulates monopoly

Question 15

Brittany provides manicures at the only salon in town.Her marginal cost is constant at $5 per client,her fixed cost is $25 per day,and she is able to do 8 manicures per day.On a given day,half of her clients are willing to pay $15 for a manicure;half are willing to pay only $10.If she charges $15 for those willing to pay a higher price and $10 to her other clients,then her maximum daily profit equals

Accepted Answer

A) $55 
B) $100 
C) $60 
D) $35 
E) $75 
A) $55 
B) $100 
C) $60 
D) $35 
E) $75

Question 16

Marginal revenue equals the price of the last unit sold for the

Accepted Answer

A) perfect price discriminator 
B) firm in monopolistic competition 
C) oligopolistic price leader 
D) foreign-owned domestic producer 
E) export producer 
A) perfect price discriminator 
B) firm in monopolistic competition 
C) oligopolistic price leader 
D) foreign-owned domestic producer 
E) export producer

Question 17

-Figure 10-12 shows the cost and demand curves facing a monopolist whose marginal cost is constant.The firm has no fixed costs.If the firm charges a single price,economic profit will equal the area

Accepted Answer

A) TABP' 
B) TCP' 
C) PAQ*0 
D) PACP' 
E) PABP' 
A) TABP' 
B) TCP' 
C) PAQ*0 
D) PACP' 
E) PABP'

Question 18

-The non-price-discriminating firm depicted in Figure 10-8 will produce

Accepted Answer

A) approximately 100 units of output 
B) approximately 150 units of output 
C) approximately 175 units of output 
D) more than 200 units of output 
E) nothing since it should close 
A) approximately 100 units of output 
B) approximately 150 units of output 
C) approximately 175 units of output 
D) more than 200 units of output 
E) nothing since it should close

Question 19

A monopolist's supply curve

Accepted Answer

A) is the upward-sloping portion of its marginal cost curve 
B) is the portion of its marginal cost curve above AVC 
C) is parallel to its long run ATC curve 
D) does not exist because quantity supplied depends on the market demand curve 
E) is derived from the average variable cost curve 
A) is the upward-sloping portion of its marginal cost curve 
B) is the portion of its marginal cost curve above AVC 
C) is parallel to its long run ATC curve 
D) does not exist because quantity supplied depends on the market demand curve 
E) is derived from the average variable cost curve

Question 20

-The firm depicted in Figure 10-14 will

Accepted Answer

A) exit the industry in the short run 
B) break even 
C) suffer an economic loss 
D) earn an economic profit 
E) shut down in the short run 
A) exit the industry in the short run 
B) break even 
C) suffer an economic loss 
D) earn an economic profit 
E) shut down in the short run

The marginal revenue curve is the same as the demand curve for the

-The firm in Figure 10-7 does not practice price discrimination.Its price and output will be

Patents and copyrights

Where is the monopoly supply curve located?

A firm charges each customer the highest price that customer will pay for the marginal unit under

A monopoly is a

A monopolist will

Suppose that a monopoly is earning economic profits in the short run.As a result,

-How much profit will the profit-maximizing level of output for the non-discriminating monopolist in Figure 10-3 yield?

When the demand for a monopolist's output falls,the monopolist will

-Figure 10-5 shows the cost and demand curves facing a monopolist whose marginal cost is constant.The firm has no fixed costs.If it does not discriminate,it will produce

A natural monopoly exists when

All of the following are forms of price discrimination,except one.Which is the exception?

In the long run,

Marginal revenue equals the price of the last unit sold for the

-Figure 10-12 shows the cost and demand curves facing a monopolist whose marginal cost is constant.The firm has no fixed costs.If the firm charges a single price,economic profit will equal the area

-The non-price-discriminating firm depicted in Figure 10-8 will produce

A monopolist's supply curve

-The firm depicted in Figure 10-14 will

What Is Economics

Scarcity, choice, and Economic Systems

Supply and Demand

Working With Supply and Demand

Elasticity

Consumer Choice

Production and Cost

How Firms Make Decisions: Profit Maximization

Perfect Competition

B:Perfect Competition

Monopolistic Competition and Oligopoly

Labor Markets

B: Labor Markets

Capital and Financial Markets

Economic Efficiency and the Competitive Ideal

Governments Role in Economic Efficiency

Comparative Advantage and the Gains From International Trade

Filters

Exam 11: Monopoly

The marginal revenue curve is the same as the demand curve for the

-The firm in Figure 10-7 does not practice price discrimination.Its price and output will be

Patents and copyrights

Where is the monopoly supply curve located?

A firm charges each customer the highest price that customer will pay for the marginal unit under

A monopoly is a

A monopolist will

Suppose that a monopoly is earning economic profits in the short run.As a result,

-How much profit will the profit-maximizing level of output for the non-discriminating monopolist in Figure 10-3 yield?

When the demand for a monopolist's output falls,the monopolist will

-Figure 10-5 shows the cost and demand curves facing a monopolist whose marginal cost is constant.The firm has no fixed costs.If it does not discriminate,it will produce

A natural monopoly exists when

All of the following are forms of price discrimination,except one.Which is the exception?

In the long run,

Marginal revenue equals the price of the last unit sold for the

-Figure 10-12 shows the cost and demand curves facing a monopolist whose marginal cost is constant.The firm has no fixed costs.If the firm charges a single price,economic profit will equal the area

-The non-price-discriminating firm depicted in Figure 10-8 will produce

A monopolist's supply curve

-The firm depicted in Figure 10-14 will

What Is Economics

Scarcity, choice, and Economic Systems

Supply and Demand

Working With Supply and Demand

Elasticity

Consumer Choice

Production and Cost

How Firms Make Decisions: Profit Maximization

Perfect Competition

B:Perfect Competition

Monopolistic Competition and Oligopoly

Labor Markets

B: Labor Markets

Capital and Financial Markets

Economic Efficiency and the Competitive Ideal

Governments Role in Economic Efficiency

Comparative Advantage and the Gains From International Trade

Filters