Question 1

Consider the same monopoly situation as in the previous question.The monopoly price is

Accepted Answer

A)  8 
B)  46 
C)  54 
D)  92 
A)  8 
B)  46 
C)  54 
D)  92

Question 2

All of the following might explain a firm offering quantity discounts except:

Accepted Answer

A)  lower costs of handling large orders. 
B)  an inelastic demand for the good. 
C)  monopoly power in this market. 
D)  existence of some high and some low demand consumers. 
A)  lower costs of handling large orders. 
B)  an inelastic demand for the good. 
C)  monopoly power in this market. 
D)  existence of some high and some low demand consumers.

Question 3

Which is not an example of price discriminating by separating markets?

Accepted Answer

A)  offering discounts for students with IDs. 
B)  charging lower prices for airline tickets with a Saturday stay-over. 
C)  selling 13 bagels (a "baker's dozen") for the price of 12. 
D)  selling snowblowers at a discount in relatively warmer climates. 
A)  offering discounts for students with IDs. 
B)  charging lower prices for airline tickets with a Saturday stay-over. 
C)  selling 13 bagels (a "baker's dozen") for the price of 12. 
D)  selling snowblowers at a discount in relatively warmer climates.

Question 4

Which of the following is not a legal barrier to entry in a monopolized market?

Accepted Answer

A)  A patent. 
B)  An exclusive franchise. 
C)  Decreasing average cost. 
D)  An exclusive license. 
A)  A patent. 
B)  An exclusive franchise. 
C)  Decreasing average cost. 
D)  An exclusive license.

Question 5

A monopolist has total cost TC = .1Q2 - 2Q + 100 and marginal cost MC = .2Q - 2.Market demand is Q = 86 - P,implying that the firm's marginal revenue is MR = 86 -2Q.Its profit-maximizing output is

Accepted Answer

A)  92 
B)  46 
C)  40 
D)  20 
A)  92 
B)  46 
C)  40 
D)  20

Question 6

A profit-maximizing monopoly will produce that output for which

Accepted Answer

A)  marginal revenue equals price. 
B)  average cost is minimized. 
C)  marginal cost is minimized. 
D)  marginal cost equals marginal revenue. 
A)  marginal revenue equals price. 
B)  average cost is minimized. 
C)  marginal cost is minimized. 
D)  marginal cost equals marginal revenue.

Question 7

A monopolist with constant average and marginal cost equal to 8 (AC = MC = 8)faces demand Q = 100 - P,implying that its marginal revenue is MR = 100 - 2Q.Its profit maximizing quantity is

Accepted Answer

A)  8 
B)  46 
C)  50 
D)  92 
A)  8 
B)  46 
C)  50 
D)  92

Consider the same monopoly situation as in the previous question.The monopoly price is

All of the following might explain a firm offering quantity discounts except:

Which is not an example of price discriminating by separating markets?

Which of the following is not a legal barrier to entry in a monopolized market?

A monopolist has total cost TC = .1Q² - 2Q + 100 and marginal cost MC = .2Q - 2.Market demand is Q = 86 - P,implying that the firm's marginal revenue is MR = 86 -2Q.Its profit-maximizing output is

A profit-maximizing monopoly will produce that output for which

A monopolist with constant average and marginal cost equal to 8 (AC = MC = 8)faces demand Q = 100 - P,implying that its marginal revenue is MR = 100 - 2Q.Its profit maximizing quantity is

Economic Models

Utility and Choice

Individual Demand Curves

Uncertainty

Game Theory

Production

Costs

Profit Maximization and Supply

Perfect Competition in a Single Market

General Equilibrium and Welfare

Imperfect Competition

Pricing in Input Markets

Capital and Time

Asymmetric Information

Externalities and Public Goods

Behavioral Economics

Filters

Exam 11: Monopoly

Consider the same monopoly situation as in the previous question.The monopoly price is

All of the following might explain a firm offering quantity discounts except:

Which is not an example of price discriminating by separating markets?

Which of the following is not a legal barrier to entry in a monopolized market?

A monopolist has total cost TC = .1Q2 - 2Q + 100 and marginal cost MC = .2Q - 2.Market demand is Q = 86 - P,implying that the firm's marginal revenue is MR = 86 -2Q.Its profit-maximizing output is

A profit-maximizing monopoly will produce that output for which

A monopolist with constant average and marginal cost equal to 8 (AC = MC = 8)faces demand Q = 100 - P,implying that its marginal revenue is MR = 100 - 2Q.Its profit maximizing quantity is

Economic Models

Utility and Choice

Individual Demand Curves

Uncertainty

Game Theory

Production

Costs

Profit Maximization and Supply

Perfect Competition in a Single Market

General Equilibrium and Welfare

Imperfect Competition

Pricing in Input Markets

Capital and Time

Asymmetric Information

Externalities and Public Goods

Behavioral Economics

Filters

A monopolist has total cost TC = .1Q² - 2Q + 100 and marginal cost MC = .2Q - 2.Market demand is Q = 86 - P,implying that the firm's marginal revenue is MR = 86 -2Q.Its profit-maximizing output is