Question 1

-For the monopolist in Figure 10-2,which point corresponds to the profit-maximizing level of output?

Accepted Answer

A) A 
B) B 
C) C 
D) D 
E) E 
A) A 
B) B 
C) C 
D) D 
E) E

Question 2

-In Figure 10-30,at its profit-maximizing output level the monopolist earns economic profit of

Accepted Answer

A) $10. 
B) $500. 
C) $750. 
D) $1250. 
A) $10. 
B) $500. 
C) $750. 
D) $1250.

Question 3

Copyrights and patents are examples of barriers to entry.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is an example of price discrimination?

Accepted Answer

A) A Burger King in New York City charging more for a hamburger than a Burger King in Manhattan,Kansas. 
B) A clothing store offering shirts at ten dollars each or two for fifteen dollars. 
C) A movie theater charging lower ticket prices to children and senior citizens. 
D) A car dealer charging higher prices for cars with air conditioning. 
A) A Burger King in New York City charging more for a hamburger than a Burger King in Manhattan,Kansas. 
B) A clothing store offering shirts at ten dollars each or two for fifteen dollars. 
C) A movie theater charging lower ticket prices to children and senior citizens. 
D) A car dealer charging higher prices for cars with air conditioning.

Question 5

-Figure 10-11 shows a single-price monopolist.The maximum level of profit that could be achieved is

Accepted Answer

A) -$20 
B) $20 
C) $300 
D) $280 
E) $40 
A) -$20 
B) $20 
C) $300 
D) $280 
E) $40

Question 6

Marginal revenue,average revenue,and price are all equal for a monopolist.

Accepted Answer

A) True 
 B)False

Question 7

-The firm depicted in Figure 10-25 is a perfect price discriminator.What is its equilibrium price and output?

Accepted Answer

A) P' and Q' 
B) P and Q 
C) P' and Q 
D) each consumer is charged the maximum price he or she is willing to pay,and the equilibrium output is Q' 
E) each consumer is charged the maximum price he or she is willing to pay,and the equilibrium output is Q 
A) P' and Q' 
B) P and Q 
C) P' and Q 
D) each consumer is charged the maximum price he or she is willing to pay,and the equilibrium output is Q' 
E) each consumer is charged the maximum price he or she is willing to pay,and the equilibrium output is Q

Question 8

A firm that engages in perfect price discrimination produces more output to maximize its profits than it would if it charged only one price.

Accepted Answer

A) True 
 B)False

Question 9

The change in total revenue obtained by selling an additional unit of output is

Accepted Answer

A) average revenue 
B) business revenue 
C) marginal revenue 
D) overhead revenue 
E) profit margin 
A) average revenue 
B) business revenue 
C) marginal revenue 
D) overhead revenue 
E) profit margin

Question 10

-For the monopolist in Figure 10-18,at which point is total revenue maximized?

Accepted Answer

A) A 
B) B 
C) C 
D) D 
E) E 
A) A 
B) B 
C) C 
D) D 
E) E

Question 11

A natural monopoly occurs when

Accepted Answer

A) patents protect a firm from competition 
B) copyrights protect a firm from competition 
C) advertising costs exceed fixed costs 
D) marginal cost exceeds marginal revenue 
E) average costs decrease over the whole range of market output 
A) patents protect a firm from competition 
B) copyrights protect a firm from competition 
C) advertising costs exceed fixed costs 
D) marginal cost exceeds marginal revenue 
E) average costs decrease over the whole range of market output

Question 12

A monopolist should shut down in the short run if

Accepted Answer

A) price is less than average variable cost 
B) price is greater than average total cost 
C) marginal revenue equals marginal cost 
D) marginal revenue is less than marginal cost 
E) price exceeds average fixed cost 
A) price is less than average variable cost 
B) price is greater than average total cost 
C) marginal revenue equals marginal cost 
D) marginal revenue is less than marginal cost 
E) price exceeds average fixed cost

Question 13

-The monopolist in Figure 10-32 is currently operating in

Accepted Answer

A) the short run. 
B) the long run. 
C) the short run or the long run. 
D) the very long run. 
A) the short run. 
B) the long run. 
C) the short run or the long run. 
D) the very long run.

Question 14

A monopolist is earning an economic profit.At the present output level,MR = $35 and MC = $30.Which of the following should the firm do to increase profit?

Accepted Answer

A) raise output and lower price 
B) do not change price or output 
C) raise price and raise output 
D) raise price and lower output 
E) lower price and lower output 
A) raise output and lower price 
B) do not change price or output 
C) raise price and raise output 
D) raise price and lower output 
E) lower price and lower output

Question 15

In the short run,the monopolist should continue to produce whenever

Accepted Answer

A) price is greater than zero 
B) price is less than average total cost 
C) price is greater than average variable cost 
D) price divided by average total cost exceeds the ratio of marginal cost to average cost at the optimal output 
E) price is less than average variable cost at the optimal output 
A) price is greater than zero 
B) price is less than average total cost 
C) price is greater than average variable cost 
D) price divided by average total cost exceeds the ratio of marginal cost to average cost at the optimal output 
E) price is less than average variable cost at the optimal output

Question 16

Which of the following is a potential barrier to entry?

Accepted Answer

A) a low market price 
B) a high market price 
C) a standardized product 
D) economies of scale 
E) diminishing marginal productivity 
A) a low market price 
B) a high market price 
C) a standardized product 
D) economies of scale 
E) diminishing marginal productivity

Question 17

Most firms are not monopolies in the real world because

Accepted Answer

A) firms usually face downward-sloping demand curves 
B) supply curves slope upward 
C) price is usually set equal to marginal cost by firms 
D) monopolies are not efficient 
E) there are substitutes for most goods 
A) firms usually face downward-sloping demand curves 
B) supply curves slope upward 
C) price is usually set equal to marginal cost by firms 
D) monopolies are not efficient 
E) there are substitutes for most goods

Question 18

-The single-price monopoly in Figure 10-14 will have an economic profit of

Accepted Answer

A) $612.50 
B) $506.25 
C) $250.00 
D) $875.00 
E) none of these 
A) $612.50 
B) $506.25 
C) $250.00 
D) $875.00 
E) none of these

Question 19

Which of the following is an example of a natural monopoly?

Accepted Answer

A) A local electricity supplier. 
B) A dry cleaner in New York City. 
C) An aircraft manufacturer. 
D) A pharmaceutical company that holds a patent on a new drug. 
A) A local electricity supplier. 
B) A dry cleaner in New York City. 
C) An aircraft manufacturer. 
D) A pharmaceutical company that holds a patent on a new drug.

Question 20

Price discrimination occurs when

Accepted Answer

A) price exceeds marginal cost 
B) a firm charges different customers different prices,and the differences are not explained by cost factors 
C) price exceeds average cost 
D) a firm charges different customers different prices,where these differences are based on cost differences 
E) price equals average variable cost 
A) price exceeds marginal cost 
B) a firm charges different customers different prices,and the differences are not explained by cost factors 
C) price exceeds average cost 
D) a firm charges different customers different prices,where these differences are based on cost differences 
E) price equals average variable cost

-For the monopolist in Figure 10-2,which point corresponds to the profit-maximizing level of output?

-In Figure 10-30,at its profit-maximizing output level the monopolist earns economic profit of

Copyrights and patents are examples of barriers to entry.

Which of the following is an example of price discrimination?

-Figure 10-11 shows a single-price monopolist.The maximum level of profit that could be achieved is

Marginal revenue,average revenue,and price are all equal for a monopolist.

-The firm depicted in Figure 10-25 is a perfect price discriminator.What is its equilibrium price and output?

A firm that engages in perfect price discrimination produces more output to maximize its profits than it would if it charged only one price.

The change in total revenue obtained by selling an additional unit of output is

-For the monopolist in Figure 10-18,at which point is total revenue maximized?

A natural monopoly occurs when

A monopolist should shut down in the short run if

-The monopolist in Figure 10-32 is currently operating in

A monopolist is earning an economic profit.At the present output level,MR = $35 and MC = $30.Which of the following should the firm do to increase profit?

In the short run,the monopolist should continue to produce whenever

Which of the following is a potential barrier to entry?

Most firms are not monopolies in the real world because

-The single-price monopoly in Figure 10-14 will have an economic profit of

Which of the following is an example of a natural monopoly?

Price discrimination occurs when

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

-For the monopolist in Figure 10-2,which point corresponds to the profit-maximizing level of output?

-In Figure 10-30,at its profit-maximizing output level the monopolist earns economic profit of

Copyrights and patents are examples of barriers to entry.

Which of the following is an example of price discrimination?

-Figure 10-11 shows a single-price monopolist.The maximum level of profit that could be achieved is

Marginal revenue,average revenue,and price are all equal for a monopolist.

-The firm depicted in Figure 10-25 is a perfect price discriminator.What is its equilibrium price and output?

A firm that engages in perfect price discrimination produces more output to maximize its profits than it would if it charged only one price.

The change in total revenue obtained by selling an additional unit of output is

-For the monopolist in Figure 10-18,at which point is total revenue maximized?

A natural monopoly occurs when

A monopolist should shut down in the short run if

-The monopolist in Figure 10-32 is currently operating in

A monopolist is earning an economic profit.At the present output level,MR = $35 and MC = $30.Which of the following should the firm do to increase profit?

In the short run,the monopolist should continue to produce whenever

Which of the following is a potential barrier to entry?

Most firms are not monopolies in the real world because

-The single-price monopoly in Figure 10-14 will have an economic profit of

Which of the following is an example of a natural monopoly?

Price discrimination occurs when

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