Table 13.2 $\begin{array}{|c|c|c|} \hline \text { Price per Dose } & \begin{array}{c} \text { Quantity } \\ \text { Demanded } \\ \text { (dose) } \end{array} & \begin{array}{c} \text { Total Cost of } \\ \text { Production } \\ \text { (dollars) } \end{array} \\ \hline \$ 80 & 0 & \$ 80 \\ \hline 72 & 1 & 82 \\ \hline 64 & 2 & 88 \\ \hline 56 & 3 & 100 \\ \hline 48 & 4 & 124 \\ \hline 40 & 5 & 164 \\ \hline 32 & 6 & 208 \\ \hline 24 & 7 & 268 \\ \hline 16 & 8 & 340 \\ \hline \end{array}$ Onawy Inc. has been granted a patent for its birch root toothache balm. Table 13.2 shows the demand and the total cost schedule for the firm. -Refer to Table 13.2.What is the approximate deadweight loss generated by Onawy when it produces the monopoly output?

A) $124 B) $42 C) $36 D) $12 A) $124 B) $42 C) $36 D) $12

Table 13.1 $\begin{array}{|c|c|c|} \hline \text { Price per Unit } & \begin{array}{c} \text { Quantity } \\ \text { Demanded } \\ \text { (units) } \end{array} & \begin{array}{c} \text { Total Cost of } \\ \text { Production } \\ \text { (dollars) } \end{array} \\ \hline \$ 85 & 10 & \$ 530 \\ \hline 80 & 11 & 540 \\ \hline 75 & 12 & 550 \\ \hline 70 & 13 & 560 \\ \hline 65 & 14 & 575 \\ \hline 60 & 15 & 595 \\ \hline 55 & 16 & 625 \\ \hline \end{array}$ A monopoly producer of foreign language translation software faces a demand and cost structure as given in Table 13.1. -Refer to Table 13.1.What is the marginal revenue from the sale of the 12th unit?

A) $75 B) $50 C) $20 D) -$5 A) $75 B) $50 C) $20 D) -$5

Exam 13: Monopoly and Antitrust Policy

Figure 13.7 Assume Shaw Cable has a monopoly to provide cable TV in Vancouver. Figure 13.7 shows the cable television market in Vancouver. -Refer to Figure 13.7.Suppose the local government imposes a $2.50 lump sum per month tax on cable companies.What happens to the price charged by the cable company following the imposition of this tax?

(Multiple Choice)

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Question 21

Microsoft hires marketing and sales specialists to decide what prices it should set for its products, whereas a wealthy wheat farmer in Saskatchewan, who sells his output in the world commodity market, does not.Why is this so?

(Multiple Choice)

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Question 22

Because a monopoly's demand curve is the same as the market demand curve for its product,

(Multiple Choice)

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Question 23

The ________ is the law that covers monopolies in Canada.

(Multiple Choice)

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Question 24

If a natural monopoly regulatory board sets a price where marginal cost is equal to demand

(Multiple Choice)

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Question 25

The Competition Bureau will prevent a merger from taking place if

(Multiple Choice)

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Question 26

Consider the following characteristics: a)a market structure with barriers to entry b)demand curves that are easily identified c)firm cannot make zero profits in the long run d)firm can reap long run profits Which of the characteristics in the list above is shared by an oligopolist and a monopolist?

(Multiple Choice)

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Question 27

Suppose that a perfectly competitive industry becomes a monopoly.What effect will this have on consumer surplus, producer surplus, and deadweight loss?

(Essay)

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Question 28

Figure 13.2 Figure 13.2 above shows the demand and cost curves facing a monopolist. -Refer to Figure 13.2.Suppose the monopolist represented in the diagram above produces positive output.What is the price charged at the profit-maximizing/loss-minimizing output level?

(Multiple Choice)

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Question 29

A Canadian government patent lasts

(Multiple Choice)

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Question 30

Peet's Coffee and Teas produces some flavourful varieties of Peet's brand coffee.Is Peet's a monopoly?

(Multiple Choice)

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Question 31

Which one of the following about a monopoly is false?

(Multiple Choice)

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Question 32

A monopoly is characterized by all of the following except

(Multiple Choice)

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Question 33

Table 13.2 Price per Dose Quantity Demanded (dose) Total Cost of Production (dollars) \ 80 0 \ 80 72 1 82 64 2 88 56 3 100 48 4 124 40 5 164 32 6 208 24 7 268 16 8 340 Onawy Inc. has been granted a patent for its birch root toothache balm. Table 13.2 shows the demand and the total cost schedule for the firm. -Refer to Table 13.2.What is the approximate deadweight loss generated by Onawy when it produces the monopoly output?

(Multiple Choice)

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Question 34

What is a network externality?

(Multiple Choice)

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Question 35

Joe Santos owns the only pizza parlor in a small town that is also home to a McDonald's, a Taco Bell and a Kentucky Fried Chicken.Using a broad definition of a monopoly, Joe has a monopoly.

(True/False)

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Question 36

Figure 13.3 Figure 13.3 shows the demand and cost curves for a monopolist. -Refer to Figure 13.3.What is the amount of the monopoly's total cost of production?

(Multiple Choice)

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Question 37

Table 13.1 Price per Unit Quantity Demanded (units) Total Cost of Production (dollars) \ 85 10 \ 530 80 11 540 75 12 550 70 13 560 65 14 575 60 15 595 55 16 625 A monopoly producer of foreign language translation software faces a demand and cost structure as given in Table 13.1. -Refer to Table 13.1.What is the marginal revenue from the sale of the 12th unit?

(Multiple Choice)

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Question 38

If a per-unit tax on output sold is imposed on a monopoly's product, the monopolist will increase its market price by the full amount of the tax.

(True/False)

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Question 39

In Hamilton, Ontario there are three very popular supermarkets: Superstore, Fortinos, and Sobeys.While Sobey's remains open twenty-four hours a day, Superstore and Fortinos close at 11 pm.Which of the following statements is true?

(Multiple Choice)

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Question 40

Microsoft hires marketing and sales specialists to decide what prices it should set for its products, whereas a wealthy wheat farmer in Saskatchewan, who sells his output in the world commodity market, does not.Why is this so?

Because a monopoly's demand curve is the same as the market demand curve for its product,

The ________ is the law that covers monopolies in Canada.

If a natural monopoly regulatory board sets a price where marginal cost is equal to demand

The Competition Bureau will prevent a merger from taking place if

Consider the following characteristics: a)a market structure with barriers to entry b)demand curves that are easily identified c)firm cannot make zero profits in the long run d)firm can reap long run profits Which of the characteristics in the list above is shared by an oligopolist and a monopolist?

Suppose that a perfectly competitive industry becomes a monopoly.What effect will this have on consumer surplus, producer surplus, and deadweight loss?

Figure 13.2 Figure 13.2 above shows the demand and cost curves facing a monopolist. -Refer to Figure 13.2.Suppose the monopolist represented in the diagram above produces positive output.What is the price charged at the profit-maximizing/loss-minimizing output level?

A Canadian government patent lasts

Peet's Coffee and Teas produces some flavourful varieties of Peet's brand coffee.Is Peet's a monopoly?

Which one of the following about a monopoly is false?

A monopoly is characterized by all of the following except

What is a network externality?

Joe Santos owns the only pizza parlor in a small town that is also home to a McDonald's, a Taco Bell and a Kentucky Fried Chicken.Using a broad definition of a monopoly, Joe has a monopoly.

Figure 13.3 Figure 13.3 shows the demand and cost curves for a monopolist. -Refer to Figure 13.3.What is the amount of the monopoly's total cost of production?

If a per-unit tax on output sold is imposed on a monopoly's product, the monopolist will increase its market price by the full amount of the tax.

In Hamilton, Ontario there are three very popular supermarkets: Superstore, Fortinos, and Sobeys.While Sobey's remains open twenty-four hours a day, Superstore and Fortinos close at 11 pm.Which of the following statements is true?

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

Externalities, Environmental Policy, and Public Goods

Elasticity: the Responsiveness of Demand and Supply

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition

Oligopoly: Firms in Less Competitive Markets

The Markets for Labour and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

Pricing Strategy

Firms, the Stock Market, and Corporate Governance

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