Question 1

The following graph depicts the costs and revenues for an unregulated monopolist:
  
-Refer to the graph above to answer this question.What is the monopolist's profit-maximizing price?

Accepted Answer

A) $10 
B) $18. 
C) $20. 
D) $30. 
E) $36. 
A) $10 
B) $18. 
C) $20. 
D) $30. 
E) $36.

Question 2

A natural monopoly exists when a single producer is able to produce at a lower cost than competing firms could.

Accepted Answer

A) True 
 B)False

Question 3

Figure 10.10 depicts the cost and revenue curves for a monopolist.
  
-Refer to Figure 10.10 to answer this question.At the profit-maximizing level of output,what is the amount of total costs?

Accepted Answer

A) $20. 
B) $600. 
C) $900. 
D) $1,200. 
E) Cannot be determined from this information. 
A) $20. 
B) $600. 
C) $900. 
D) $1,200. 
E) Cannot be determined from this information.

Question 4

The following data refers to an unregulated monopolist:
  
-Refer to the above information to answer this question.What is the maximum level of total profit?

Accepted Answer

A) $0. 
B) $10. 
C) $15. 
D) $25. 
E) $140. 
A) $0. 
B) $10. 
C) $15. 
D) $25. 
E) $140.

Question 5

All of the following except one are necessary conditions in order for price discrimination to be practiced.Which is the exception?

Accepted Answer

A) The different groups of buyers must have different elasticities of demand. 
B) The seller's costs of production must be different in reference to each group of buyers. 
C) The seller must be able to identify members belonging to different buying groups. 
D) The seller must be able to separate members belonging to different buying groups. 
E) The seller must be able to prevent the resale of the product. 
A) The different groups of buyers must have different elasticities of demand. 
B) The seller's costs of production must be different in reference to each group of buyers. 
C) The seller must be able to identify members belonging to different buying groups. 
D) The seller must be able to separate members belonging to different buying groups. 
E) The seller must be able to prevent the resale of the product.

Question 6

What is the name for a market where a single producer is able to produce at a lower cost than competing firms could?

Accepted Answer

A) Unregulated monopoly. 
B) Oligopoly. 
C) Natural monopoly. 
D) Trade association. 
A) Unregulated monopoly. 
B) Oligopoly. 
C) Natural monopoly. 
D) Trade association.

Question 7

A lump-sum profit tax imposed on a monopolist will cause the monopolist to increase the price and reduce output in order to maximize its profits.

Accepted Answer

A) True 
 B)False

Question 8

Table 10.5,which is data for a monopolist.
  
-Refer to Table 10.5 to answer this question.What would be the output and price if this firm was regulated and required to charge a fair-return price?

Accepted Answer

A) 4 and $52. 
B) 4 and $64. 
C) 5 and $60. 
D) 6 and $56. 
E) 9 and $44. 
A) 4 and $52. 
B) 4 and $64. 
C) 5 and $60. 
D) 6 and $56. 
E) 9 and $44.

Question 9

Sole ownership of a particular resource is an example of what?

Accepted Answer

A) A natural monopoly. 
B) A technical barrier to entry. 
C) An economic barrier to entry. 
D) A public utility. 
A) A natural monopoly. 
B) A technical barrier to entry. 
C) An economic barrier to entry. 
D) A public utility.

Question 10

All of the following except one are examples of monopolies in Canada.Which is the exception?

Accepted Answer

A) CBC Television. 
B) Manitoba Hydro. 
C) Rogers Cablevision. 
D) Montreal Subway system. 
A) CBC Television. 
B) Manitoba Hydro. 
C) Rogers Cablevision. 
D) Montreal Subway system.

Question 11

What effect does a lump-sum profit tax have on a monopolist?

Accepted Answer

A) It causes the price to increase but has no effect on the output. 
B) It causes the output to decrease but has no effect on the price. 
C) It causes the price to increase and the output to decrease. 
D) It causes the output to increase but has no effect on the price. 
E) It has no effect on either the price or the output. 
A) It causes the price to increase but has no effect on the output. 
B) It causes the output to decrease but has no effect on the price. 
C) It causes the price to increase and the output to decrease. 
D) It causes the output to increase but has no effect on the price. 
E) It has no effect on either the price or the output.

Question 12

-Refer to the graph above to answer this question.What is the maximum profit?

Accepted Answer

A) 0. 
B) $2,000. 
C) $3,000. 
D) $4,000. 
A) 0. 
B) $2,000. 
C) $3,000. 
D) $4,000.

Question 13

-Refer to the above graph to answer this question.Suppose that the graph represents a monopolist.What is the value of its maximum total revenue?

Accepted Answer

A) $20. 
B) $100. 
C) $480. 
D) $500. 
E) Cannot be determined. 
A) $20. 
B) $100. 
C) $480. 
D) $500. 
E) Cannot be determined.

Question 14

You own four firms that produce different products.The following table summarizes the conditions in each firm.After calculating the missing numbers for each firm,make one of the following four decisions regarding operations in each firm,and explain why a particular decision is reached.
(a)continue producing the same output level
(b)shut down
(c)increase output
(d)decrease output

Accepted Answer

The complete table:
 @#IMG-DLM& 
Firm A:Increase p

Question 15

The following graph gives cost and revenue data for a monopolist:
  
-Refer to the above graph to answer this question.If the monopolist is unregulated,what will be the level of its maximum total revenue?

Accepted Answer

A) $80. 
B) $700. 
C) $1,400. 
D) $3,150. 
E) $3,200. 
A) $80. 
B) $700. 
C) $1,400. 
D) $3,150. 
E) $3,200.

Question 16

-Refer to the above graph to answer this question.Suppose that the graph represents a monopolist.At the profit maximizing price and output,what will be the level of total profit?

Accepted Answer

A) $0. 
B) 6. 
C) $180. 
D) $240. 
E) Cannot be determined. 
A) $0. 
B) 6. 
C) $180. 
D) $240. 
E) Cannot be determined.

Question 17

State whether each of the following is a technical barrier,legal barrier or an economic barrier.
a)High fixed cost.
b)Patent.
c)Government regulation.
d)Control of a strategic resource.

Accepted Answer

a)Economic barrier.

Question 18

The following data relates to an unregulated monopolist with total fixed cost of $32:
  
-Refer to the above information to answer this question.What is the level of profits at the profit-maximizing output?

Accepted Answer

A) $0. 
B) $16. 
C) $21. 
D) $26. 
E) $62. 
A) $0. 
B) $16. 
C) $21. 
D) $26. 
E) $62.

Question 19

The following graph shows the market demand and average cost curve for electricity (in millions of kilowatts)in an urban centre:
  
-Refer to the above graph to answer this question.Suppose that the price is $3,and the market is served by two competing firms,each having 50% of the market.What will be the profit or loss made by each firm?

Accepted Answer

A) $0. 
B) Loss of $50. 
C) Loss of $100. 
D) Loss of $150. 
E) Profit of $100. 
A) $0. 
B) Loss of $50. 
C) Loss of $100. 
D) Loss of $150. 
E) Profit of $100.

Question 20

-Refer to the graph above.Area C represents:

Accepted Answer

A) the loss of surplus by consumers resulting from a monopoly. 
B) the cost to society of increasing output from Qm to Qc. 
C) consumer surplus redistributed to the monopolist. 
D) the loss of surplus by producers resulting from a monopoly. 
A) the loss of surplus by consumers resulting from a monopoly. 
B) the cost to society of increasing output from Qm to Qc. 
C) consumer surplus redistributed to the monopolist. 
D) the loss of surplus by producers resulting from a monopoly.

The following graph depicts the costs and revenues for an unregulated monopolist: -Refer to the graph above to answer this question.What is the monopolist's profit-maximizing price?

A natural monopoly exists when a single producer is able to produce at a lower cost than competing firms could.

Figure 10.10 depicts the cost and revenue curves for a monopolist. -Refer to Figure 10.10 to answer this question.At the profit-maximizing level of output,what is the amount of total costs?

The following data refers to an unregulated monopolist: -Refer to the above information to answer this question.What is the maximum level of total profit?

All of the following except one are necessary conditions in order for price discrimination to be practiced.Which is the exception?

What is the name for a market where a single producer is able to produce at a lower cost than competing firms could?

A lump-sum profit tax imposed on a monopolist will cause the monopolist to increase the price and reduce output in order to maximize its profits.

Table 10.5,which is data for a monopolist. -Refer to Table 10.5 to answer this question.What would be the output and price if this firm was regulated and required to charge a fair-return price?

Sole ownership of a particular resource is an example of what?

All of the following except one are examples of monopolies in Canada.Which is the exception?

What effect does a lump-sum profit tax have on a monopolist?

-Refer to the graph above to answer this question.What is the maximum profit?

-Refer to the above graph to answer this question.Suppose that the graph represents a monopolist.What is the value of its maximum total revenue?

The following graph gives cost and revenue data for a monopolist: -Refer to the above graph to answer this question.If the monopolist is unregulated,what will be the level of its maximum total revenue?

-Refer to the above graph to answer this question.Suppose that the graph represents a monopolist.At the profit maximizing price and output,what will be the level of total profit?

State whether each of the following is a technical barrier,legal barrier or an economic barrier. a)High fixed cost. b)Patent. c)Government regulation. d)Control of a strategic resource.

The following data relates to an unregulated monopolist with total fixed cost of $32: -Refer to the above information to answer this question.What is the level of profits at the profit-maximizing output?

-Refer to the graph above.Area C represents:

The Economic Problem

Demand and Supply: An Introduction

Demand and Supply: An Elaboration

Elasticity

Consumer Choice

A Firms Production Decisions and Costs in the Short Run

Costs in the Long Run

Perfect Competition

An Evaluation of Competitive Markets

Imperfect Competition

The Factors of Production

International Trade

Filters

Exam 10: Monopoly

The following graph depicts the costs and revenues for an unregulated monopolist: -Refer to the graph above to answer this question.What is the monopolist's profit-maximizing price?

A natural monopoly exists when a single producer is able to produce at a lower cost than competing firms could.

Figure 10.10 depicts the cost and revenue curves for a monopolist. -Refer to Figure 10.10 to answer this question.At the profit-maximizing level of output,what is the amount of total costs?

The following data refers to an unregulated monopolist: -Refer to the above information to answer this question.What is the maximum level of total profit?

All of the following except one are necessary conditions in order for price discrimination to be practiced.Which is the exception?

What is the name for a market where a single producer is able to produce at a lower cost than competing firms could?

A lump-sum profit tax imposed on a monopolist will cause the monopolist to increase the price and reduce output in order to maximize its profits.

Table 10.5,which is data for a monopolist. -Refer to Table 10.5 to answer this question.What would be the output and price if this firm was regulated and required to charge a fair-return price?

Sole ownership of a particular resource is an example of what?

All of the following except one are examples of monopolies in Canada.Which is the exception?

What effect does a lump-sum profit tax have on a monopolist?

-Refer to the graph above to answer this question.What is the maximum profit?

-Refer to the above graph to answer this question.Suppose that the graph represents a monopolist.What is the value of its maximum total revenue?

The following graph gives cost and revenue data for a monopolist: -Refer to the above graph to answer this question.If the monopolist is unregulated,what will be the level of its maximum total revenue?

-Refer to the above graph to answer this question.Suppose that the graph represents a monopolist.At the profit maximizing price and output,what will be the level of total profit?

State whether each of the following is a technical barrier,legal barrier or an economic barrier. a)High fixed cost. b)Patent. c)Government regulation. d)Control of a strategic resource.

The following data relates to an unregulated monopolist with total fixed cost of $32: -Refer to the above information to answer this question.What is the level of profits at the profit-maximizing output?

-Refer to the graph above.Area C represents:

The Economic Problem

Demand and Supply: An Introduction

Demand and Supply: An Elaboration

Elasticity

Consumer Choice

A Firms Production Decisions and Costs in the Short Run

Costs in the Long Run

Perfect Competition

An Evaluation of Competitive Markets

Imperfect Competition

The Factors of Production

International Trade

Filters