Question 1

Table 10.3
-Refer to Table 10.3.The profit-maximizing monopolist will choose to produce ________ units of output.

Accepted Answer

A)  3 
B)  4 
C)  5 
D)  6 
A)  3 
B)  4 
C)  5 
D)  6

Question 2

Price discrimination can be an effective way to increase a firm's profit if the price elasticity of demand is the same across all buyers the firm serves.

Accepted Answer

A) True 
 B)False

Question 3

The government is not able to regulate the price that a monopolist charges because the price is set by the market.

Accepted Answer

A) True 
 B)False

Question 4

From an economic standpoint,patents reduce efficiency because they serve as a barrier to entry and thus limit market competition.Are there any positive economic benefits of patents? Explain.

Accepted Answer

Yes.Patents provide an incentive for inv

Question 5

Strawberry,Inc.has a monopoly on the sale of a specialized smartphone.If it sells 9 of these smartphones its total revenue is $1,800,and if it sells 10 smartphones its total revenue is $1,950.The marginal revenue of the tenth smartphone sold is

Accepted Answer

A)  $75. 
B)  $150. 
C)  $1,800. 
D)  $1,950. 
A)  $75. 
B)  $150. 
C)  $1,800. 
D)  $1,950.

Question 6

To maximize profit,the monopolist produces on the ________ portion of the demand curve where ________.

Accepted Answer

A)  elastic; price equals marginal cost 
B)  elastic; marginal revenue equals marginal cost 
C)  inelastic; price equals marginal revenue 
D)  inelastic; marginal revenue equals marginal cost 
A)  elastic; price equals marginal cost 
B)  elastic; marginal revenue equals marginal cost 
C)  inelastic; price equals marginal revenue 
D)  inelastic; marginal revenue equals marginal cost

Question 7

When the firm is producing at the monopoly equilibrium,its producer surplus will be ________ and the consumer surplus will be ________ than if the industry was competitive.

Accepted Answer

A)  higher; lower 
B)  higher; higher 
C)  lower; lower 
D)  lower; higher 
A)  higher; lower 
B)  higher; higher 
C)  lower; lower 
D)  lower; higher

Question 8

For a monopolist,price is equal to marginal revenue.

Accepted Answer

A) True 
 B)False

Question 9

For a competitive firm,the level of output that maximizes profits is where marginal revenue ________ marginal cost,and for a monopolist it is where marginal revenue ________ marginal cost.

Accepted Answer

A)  is equal to; is greater than 
B)  is equal to; is less than 
C)  is equal to; is equal to 
D)  is greater than; is equal to 
A)  is equal to; is greater than 
B)  is equal to; is less than 
C)  is equal to; is equal to 
D)  is greater than; is equal to

Question 10

From society's point of view,a monopolist produces too little because price

Accepted Answer

A)  is less than marginal cost. 
B)  is less than average cost. 
C)  exceeds average cost. 
D)  exceeds marginal cost. 
A)  is less than marginal cost. 
B)  is less than average cost. 
C)  exceeds average cost. 
D)  exceeds marginal cost.

Question 11

Assume a non-price discriminating monopolist can sell 20 units of a good for 4.00 each and can sell 21 units of that good for $ 3.85 each.The marginal revenue of the 21st unit is

Accepted Answer

A)  $85.00. 
B)  $0.85. 
C)  -$0.85. 
D)  -$85.00. 
A)  $85.00. 
B)  $0.85. 
C)  -$0.85. 
D)  -$85.00.

Question 12

-Refer to Figure 10.2.The marginal revenue of the eighth pound of burritos is

Accepted Answer

A)  $3. 
B)  $5. 
C)  $6. 
D)  $24. 
A)  $3. 
B)  $5. 
C)  $6. 
D)  $24.

Question 13

What is a government franchise? Give an example.

Accepted Answer

A government franchise exists

Question 14

-Refer to Figure 10.9.The profit-maximizing level of output for the monopolist is

Accepted Answer

A)  500. 
B)  600. 
C)  800. 
D)  1,200. 
A)  500. 
B)  600. 
C)  800. 
D)  1,200.

Question 15

Recall the Application about the reason for the high price of movie popcorn to answer the following question(s).
-Recall the Application.What happens with the high demanders and low demanders if the movie theater were to lower the price of the popcorn from $4 to $0.10 and increase the admission from $10 to $12?

Accepted Answer

A)  The low demanders will still see the movie and buy popcorn. 
B)  The high demanders will see the movie and buy popcorn at the same rate as the low demanders. 
C)  The high demanders will see the movie and buy popcorn and the low demanders will not do either. 
D)  The high demanders will not see the movie and buy popcorn. 
A)  The low demanders will still see the movie and buy popcorn. 
B)  The high demanders will see the movie and buy popcorn at the same rate as the low demanders. 
C)  The high demanders will see the movie and buy popcorn and the low demanders will not do either. 
D)  The high demanders will not see the movie and buy popcorn.

Question 16

Which of the following is a result of the monopolization of a perfectly competitive industry,ceteris paribus?

Accepted Answer

A)  lower prices 
B)  greater efficiency 
C)  reduced profits 
D)  deadweight loss 
A)  lower prices 
B)  greater efficiency 
C)  reduced profits 
D)  deadweight loss

Question 17

-Refer to Figure 10.5.The profit-maximizing price for the Memory Company's high school yearbook is

Accepted Answer

A)  $0. 
B)  $9. 
C)  $16. 
D)  $20. 
A)  $0. 
B)  $9. 
C)  $16. 
D)  $20.

Question 18

A monopoly firm cannot affect the price,and is therefore a price taker.

Accepted Answer

A) True 
 B)False

Question 19

A monopolist can

Accepted Answer

A)  sell as much as he wants at the chosen price since he is the only seller. 
B)  increase price only if he is willing to reduce output sold. 
C)  increase the price of his output and still sell the same quantity. 
D)  increase the price of his output and the quantity sold at the same time. 
A)  sell as much as he wants at the chosen price since he is the only seller. 
B)  increase price only if he is willing to reduce output sold. 
C)  increase the price of his output and still sell the same quantity. 
D)  increase the price of his output and the quantity sold at the same time.

Question 20

How does rent-seeking behavior result in additional deadweight loss?

Accepted Answer

Rent-seeking behavior includes those act

Table 10.3 -Refer to Table 10.3.The profit-maximizing monopolist will choose to produce ________ units of output.

Price discrimination can be an effective way to increase a firm's profit if the price elasticity of demand is the same across all buyers the firm serves.

The government is not able to regulate the price that a monopolist charges because the price is set by the market.

From an economic standpoint,patents reduce efficiency because they serve as a barrier to entry and thus limit market competition.Are there any positive economic benefits of patents? Explain.

Strawberry,Inc.has a monopoly on the sale of a specialized smartphone.If it sells 9 of these smartphones its total revenue is $1,800,and if it sells 10 smartphones its total revenue is $1,950.The marginal revenue of the tenth smartphone sold is

To maximize profit,the monopolist produces on the portion of the demand curve where .

When the firm is producing at the monopoly equilibrium,its producer surplus will be and the consumer surplus will be than if the industry was competitive.

For a monopolist,price is equal to marginal revenue.

For a competitive firm,the level of output that maximizes profits is where marginal revenue marginal cost,and for a monopolist it is where marginal revenue marginal cost.

From society's point of view,a monopolist produces too little because price

Assume a non-price discriminating monopolist can sell 20 units of a good for 4.00 each and can sell 21 units of that good for $ 3.85 each.The marginal revenue of the 21st unit is

-Refer to Figure 10.2.The marginal revenue of the eighth pound of burritos is

What is a government franchise? Give an example.

-Refer to Figure 10.9.The profit-maximizing level of output for the monopolist is

Which of the following is a result of the monopolization of a perfectly competitive industry,ceteris paribus?

-Refer to Figure 10.5.The profit-maximizing price for the Memory Company's high school yearbook is

A monopoly firm cannot affect the price,and is therefore a price taker.

A monopolist can

How does rent-seeking behavior result in additional deadweight loss?

Introduction: What Is Economics

The Key Principles of Economics

Exchange and Markets

Demand,supply,and Market Equilibrium

Elasticity: a Measure of Responsiveness

Market Efficiency and Government Intervention

Consumer Choice: Utility Theory and Insights From Neuroscience

Production Technology and Cost

Perfect Competition

Market Entry and Monopolistic Competition

Oligopoly and Strategic Behavior

Controlling Market Power: Antitrust and Regulation

Imperfect Information: Adverse Selection and Moral Hazard

Public Goods and Public Choice

External Costs and Environmental Policy

The Labor Market and the Distribution of Income

International Trade and Public Policy

Filters

Exam 10: Monopoly and Price Discrimination

Table 10.3 -Refer to Table 10.3.The profit-maximizing monopolist will choose to produce ________ units of output.

Price discrimination can be an effective way to increase a firm's profit if the price elasticity of demand is the same across all buyers the firm serves.

The government is not able to regulate the price that a monopolist charges because the price is set by the market.

From an economic standpoint,patents reduce efficiency because they serve as a barrier to entry and thus limit market competition.Are there any positive economic benefits of patents? Explain.

Strawberry,Inc.has a monopoly on the sale of a specialized smartphone.If it sells 9 of these smartphones its total revenue is $1,800,and if it sells 10 smartphones its total revenue is $1,950.The marginal revenue of the tenth smartphone sold is

To maximize profit,the monopolist produces on the ________ portion of the demand curve where ________.

When the firm is producing at the monopoly equilibrium,its producer surplus will be ________ and the consumer surplus will be ________ than if the industry was competitive.

For a monopolist,price is equal to marginal revenue.

For a competitive firm,the level of output that maximizes profits is where marginal revenue ________ marginal cost,and for a monopolist it is where marginal revenue ________ marginal cost.

From society's point of view,a monopolist produces too little because price

Assume a non-price discriminating monopolist can sell 20 units of a good for 4.00 each and can sell 21 units of that good for $ 3.85 each.The marginal revenue of the 21st unit is

-Refer to Figure 10.2.The marginal revenue of the eighth pound of burritos is

What is a government franchise? Give an example.

-Refer to Figure 10.9.The profit-maximizing level of output for the monopolist is

Which of the following is a result of the monopolization of a perfectly competitive industry,ceteris paribus?

-Refer to Figure 10.5.The profit-maximizing price for the Memory Company's high school yearbook is

A monopoly firm cannot affect the price,and is therefore a price taker.

A monopolist can

How does rent-seeking behavior result in additional deadweight loss?

Introduction: What Is Economics

The Key Principles of Economics

Exchange and Markets

Demand,supply,and Market Equilibrium

Elasticity: a Measure of Responsiveness

Market Efficiency and Government Intervention

Consumer Choice: Utility Theory and Insights From Neuroscience

Production Technology and Cost

Perfect Competition

Market Entry and Monopolistic Competition

Oligopoly and Strategic Behavior

Controlling Market Power: Antitrust and Regulation

Imperfect Information: Adverse Selection and Moral Hazard

Public Goods and Public Choice

External Costs and Environmental Policy

The Labor Market and the Distribution of Income

International Trade and Public Policy

Filters

To maximize profit,the monopolist produces on the portion of the demand curve where .

When the firm is producing at the monopoly equilibrium,its producer surplus will be and the consumer surplus will be than if the industry was competitive.

For a competitive firm,the level of output that maximizes profits is where marginal revenue marginal cost,and for a monopolist it is where marginal revenue marginal cost.