Question 1

In the long run,

Accepted Answer

A) both monopolists and perfectly competitive firms produce at minimum long-run average total cost. 
B) a monopolist will exit the industry if he is earning zero economic profit. 
C) a monopolist will always charge a higher price than he charges in the short run. 
D) consumer surplus is smaller if an industry is a monopoly than if it is perfectly competitive. 
A) both monopolists and perfectly competitive firms produce at minimum long-run average total cost. 
B) a monopolist will exit the industry if he is earning zero economic profit. 
C) a monopolist will always charge a higher price than he charges in the short run. 
D) consumer surplus is smaller if an industry is a monopoly than if it is perfectly competitive.

Question 2

A 50 percent tax on the profits of a monopolist will

Accepted Answer

A) be totally shifted to the consumer. 
B) raise price and lower quantity. 
C) cause no change in profit-maximizing price and quantity. 
D) change price but not quantity. 
A) be totally shifted to the consumer. 
B) raise price and lower quantity. 
C) cause no change in profit-maximizing price and quantity. 
D) change price but not quantity.

Question 3

The differences between a competitive market and a monopoly include all of these except:

Accepted Answer

A) ​excess profits would be competed away in a competitive market, but persist in a monopolistic market 
B) ​a competitive market would work toward production of the quantity consumers seek, while a monopolistic market may restrict output to raise short term prices 
C) ​a competitive market's cost curves will shift with the market, while a monopoly's cost curves will remain stable 
D) ​​a competitive market would work toward production of the quantity consumers seek, while a monopolistic market may restrict output to raise long term prices 
A) ​excess profits would be competed away in a competitive market, but persist in a monopolistic market 
B) ​a competitive market would work toward production of the quantity consumers seek, while a monopolistic market may restrict output to raise short term prices 
C) ​a competitive market's cost curves will shift with the market, while a monopoly's cost curves will remain stable 
D) ​​a competitive market would work toward production of the quantity consumers seek, while a monopolistic market may restrict output to raise long term prices

Question 4

Figure 11-5
  
-In Figure 11-5 are the cost and revenue curves of a monopolist in the theater market, Crown Theater, which is the only movie theater in the city.At its profit-maximizing quantity of tickets sold, movie goers will buy ____ tickets.

Accepted Answer

A) 60 
B) 100 
C) 120 
D) 140 
A) 60 
B) 100 
C) 120 
D) 140

Question 5

The U.S.Postal Service engages in price discrimination.

Accepted Answer

A) True 
 B)False

Question 6

A monopolist maximizes profit by producing the quantity at which MC = MR, just like a perfect competitor.

Accepted Answer

A) True 
 B)False

Question 7

Figure 11-4
  
-Physicians have two types of patients: private patients who pay directly or with insurance, and Medicaid patients whose care is paid for by the state.Physicians must lower prices to attract more private patients, but they can add unlimited Medicaid patients at a constant price.The situation facing Dr.Casey is depicted in Figure 11-4.Units of medical service (say, number of patients x number of visits) are measured on the horizontal axis.How many units of medical service will Dr.Casey deliver to Medicaid patients?

Accepted Answer

A) OA 
B) AC 
C) OC 
D) OD 
A) OA 
B) AC 
C) OC 
D) OD

Question 8

Successful advertising by a monopolist will

Accepted Answer

A) reduce the gap between the monopoly and competitive output. 
B) increase the gap between the monopoly and competitive output. 
C) cause the monopolist to overproduce. 
D) cause the monopolist to decrease output. 
A) reduce the gap between the monopoly and competitive output. 
B) increase the gap between the monopoly and competitive output. 
C) cause the monopolist to overproduce. 
D) cause the monopolist to decrease output.

Exam 11: Monopoly

In the long run,

A 50 percent tax on the profits of a monopolist will

The differences between a competitive market and a monopoly include all of these except:

Figure 11-5 -In Figure 11-5 are the cost and revenue curves of a monopolist in the theater market, Crown Theater, which is the only movie theater in the city.At its profit-maximizing quantity of tickets sold, movie goers will buy ____ tickets.

The U.S.Postal Service engages in price discrimination.

A monopolist maximizes profit by producing the quantity at which MC = MR, just like a perfect competitor.

Successful advertising by a monopolist will

What Is Economics

The Economy: Myth and Reality

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: an Initial Look

Consumer Choice: Individual and Market Demand

Demand and Elasticity

Production, Inputs, and Cost: Building Blocks for Supply Analysis

Output, Price, and Profit: the Importance of Marginal Analysis

Securities: Business Finance and the Economy: the Tail That Wags the Dog

The Firm and the Industry Under Perfect Competition

Between Competition and Monopoly

Limiting Market Power: Regulation and Antitrust

The Case for Free Markets: the Price System

The Shortcomings of Free Markets

Externalities, the Environment, and Natural Resources

Taxation and Resource Allocation

Pricing the Factors of Production

Labor and Entrepreneurship: the Human Inputs

Poverty, Inequality, and Discrimination

Is Useconomic Leadership Threatened

An Introduction to Macroeconomics

The Goals of Macroeconomic Policy

Economic Growth: Theory and Policy

Aggregate Demand and the Powerful Consumer

Demand-Side Equilibrium: Unemployment or Inflation

Bringing in the Supply Side: Unemployment and Inflation

Managing Aggregate Demand: Fiscal Policy

Money and the Banking System

Monetary Policy: Conventional and Unconventional

He Financial Crisis and the Great Recession

The Debate Over Monetary and Fiscal Policy

Budget Deficits in the Short and Long Run

The Trade-Off Between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System: Order or Disorder

Exchange Rates and the Macroeconomy

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