Question 1

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

Accepted Answer

A) 0. 
B) $1,500. 
C) $2,000. 
D) $3,000. 
A) 0. 
B) $1,500. 
C) $2,000. 
D) $3,000.

Question 2

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 break-even level (s)of output?

Accepted Answer

A) 0. 
B) 5 and 9. 
C) 5 and 10. 
D) 6 and 10. 
E) 8. 
A) 0. 
B) 5 and 9. 
C) 5 and 10. 
D) 6 and 10. 
E) 8.

Question 3

If price were set equal to MC,as shown in the graph above,consumer surplus would be what amount?

Accepted Answer

[5 - 2.5]

Question 4

Distinguish between the marginal revenue for a perfectly competitive firm and that of a monopolist.

Accepted Answer

The marginal revenue for a perfectly com

Question 5

All of the following,except one,are ways that the monopolist's activities might be threatened.Which is the exception?

Accepted Answer

A) The monopolist might fear the future intervention of the government. 
B) The monopolist might fear the threat of a possible consumer boycott and the ensuing bad publicity. 
C) The monopolist might fear the possibility of new firms eventually trying to enter the industry. 
D) The monopolist might fear the threat of a new trade association. 
A) The monopolist might fear the future intervention of the government. 
B) The monopolist might fear the threat of a possible consumer boycott and the ensuing bad publicity. 
C) The monopolist might fear the possibility of new firms eventually trying to enter the industry. 
D) The monopolist might fear the threat of a new trade association.

Question 6

Figure 10.10 depicts the cost and revenue curves for a monopolist.
  
-Refer to Figure 10.10 to answer this question.What is the level of profits at the profit-maximizing output?

Accepted Answer

A) 0. 
B) $20. 
C) $150. 
D) $450. 
E) $600. 
A) 0. 
B) $20. 
C) $150. 
D) $450. 
E) $600.

Question 7

All of the following,except one,are true at the output where a monopolist's marginal revenue is equal to zero? Which is the exception?

Accepted Answer

A) It is the output that maximizes total revenue. 
B) It is the output that maximizes average revenue. 
C) It is the output that is associated with the mid-point of the AR curve. 
D) It is the output where average revenue must be greater than marginal revenue. 
A) It is the output that maximizes total revenue. 
B) It is the output that maximizes average revenue. 
C) It is the output that is associated with the mid-point of the AR curve. 
D) It is the output where average revenue must be greater than marginal revenue.

Question 8

-Refer to the graph above to answer this question.What are the break-even level(s)of output?

Accepted Answer

A) 0 units only. 
B) 30 units only 
C) 30 and 120 units. 
D) 0,30 and 120 units. 
A) 0 units only. 
B) 30 units only 
C) 30 and 120 units. 
D) 0,30 and 120 units.

Question 9

A fair-return price is a price set equal to a firm's lowest average cost.

Accepted Answer

A) True 
 B)False

Question 10

The following table gives the cost and demand data for a particular market.
  
-Refer to the above information to answer this question.Suppose that the data describes a monopoly industry.What will be the total profits or loss at the profit-maximizing output?

Accepted Answer

A) $0. 
B) Profit of $3.5. 
C) Profit of $4. 
D) Profit of $4.5. 
E) Loss of $9. 
A) $0. 
B) Profit of $3.5. 
C) Profit of $4. 
D) Profit of $4.5. 
E) Loss of $9.

Question 11

All of the following statements,except one,are true about a monopolist.Which is the exception?

Accepted Answer

A) The monopolist can determine the price,but the market will determine the quantity purchased. 
B) The monopolist can determine the quantity offered for purchase but the market will determine the price. 
C) The monopolist can determine both the quantity offered for purchase and the price. 
D) The monopolist faces a downward-sloping market demand curve. 
A) The monopolist can determine the price,but the market will determine the quantity purchased. 
B) The monopolist can determine the quantity offered for purchase but the market will determine the price. 
C) The monopolist can determine both the quantity offered for purchase and the price. 
D) The monopolist faces a downward-sloping market demand curve.

Question 12

Which of the following is true?

Accepted Answer

A) A monopolist cannot make economic losses in the short run. 
B) A monopolist cannot make economic losses in the long run. 
C) A monopolist always makes economic profits. 
D) A monopolist never makes economic profits. 
A) A monopolist cannot make economic losses in the short run. 
B) A monopolist cannot make economic losses in the long run. 
C) A monopolist always makes economic profits. 
D) A monopolist never makes economic profits.

Question 13

Suppose that a perfectly competitive industry is monopolized.If the costs of production remain unchanged,which of the following statements is correct?

Accepted Answer

A) Both the price and the output of the perfectly competitive industry will be higher than those of the monopoly industry. 
B) Both the price and the output of the perfectly competitive industry will be lower than those of the monopoly industry. 
C) The perfectly competitive price will be higher,and the output will be lower. 
D) The perfectly competitive price will be lower,and the output will be higher. 
E) Output and price will remain unchanged. 
A) Both the price and the output of the perfectly competitive industry will be higher than those of the monopoly industry. 
B) Both the price and the output of the perfectly competitive industry will be lower than those of the monopoly industry. 
C) The perfectly competitive price will be higher,and the output will be lower. 
D) The perfectly competitive price will be lower,and the output will be higher. 
E) Output and price will remain unchanged.

Question 14

Which of the following statements regarding the definition of a monopoly market is incorrect?

Accepted Answer

A) Whether a certain market is regarded as a monopoly depends upon the definition of the demand. 
B) Whether a certain market is regarded as a monopoly depends upon the definition of the market. 
C) Whether a certain market is regarded as a monopoly depends upon the definition of the product. 
D) Whether a certain market is regarded as a monopoly depends upon the definition of substitute goods. 
A) Whether a certain market is regarded as a monopoly depends upon the definition of the demand. 
B) Whether a certain market is regarded as a monopoly depends upon the definition of the market. 
C) Whether a certain market is regarded as a monopoly depends upon the definition of the product. 
D) Whether a certain market is regarded as a monopoly depends upon the definition of substitute goods.

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 and is maximizing its total revenue,what will be the resulting total profit or loss?

Accepted Answer

A) $0. 
B) Loss of $600. 
C) Loss of $2,400. 
D) Profit of $640. 
E) Profit of $2,400. 
A) $0. 
B) Loss of $600. 
C) Loss of $2,400. 
D) Profit of $640. 
E) Profit of $2,400.

Question 16

The following table shows the demand facing an unregulated monopolist:
  
-Refer to the above information to answer this question.What is the average revenue of the 5th unit?

Accepted Answer

A) $5. 
B) $30. 
C) $50. 
D) $52.50. 
E) $250. 
A) $5. 
B) $30. 
C) $50. 
D) $52.50. 
E) $250.

Question 17

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 maximum total revenue?

Accepted Answer

A) $600. 
B) $40,000. 
C) $42,000. 
D) $48,000. 
E) $50,000. 
A) $600. 
B) $40,000. 
C) $42,000. 
D) $48,000. 
E) $50,000.

Question 18

Table 10.3 shows the demand and total cost for Zeta,a monopolist.
Table 10.3
   a)What is the profit maximizing level of output and price?
b)What is value of marginal cost and marginal revenue at profit maximization?

Accepted Answer

a)Profit maximizing output and

Question 19

Which of the following markets most closely resembles a monopoly?

Accepted Answer

A) The automobile market. 
B) The diamond market. 
C) The bond market. 
D) The steel market. 
A) The automobile market. 
B) The diamond market. 
C) The bond market. 
D) The steel market.

Question 20

The following table gives the cost and demand data for a particular market.
  
-Refer to the above information to answer this question.Suppose that the data describes a perfectly competitive industry.What will be the equilibrium price and output?

Accepted Answer

A) $11.5 and 4. 
B) $10 and 5. 
C) $8.5 and 6. 
D) $7 and 7. 
E) $5.5 and 8. 
A) $11.5 and 4. 
B) $10 and 5. 
C) $8.5 and 6. 
D) $7 and 7. 
E) $5.5 and 8.

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

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 break-even level (s)of output?

If price were set equal to MC,as shown in the graph above,consumer surplus would be what amount?

Distinguish between the marginal revenue for a perfectly competitive firm and that of a monopolist.

All of the following,except one,are ways that the monopolist's activities might be threatened.Which is the exception?

Figure 10.10 depicts the cost and revenue curves for a monopolist. -Refer to Figure 10.10 to answer this question.What is the level of profits at the profit-maximizing output?

All of the following,except one,are true at the output where a monopolist's marginal revenue is equal to zero? Which is the exception?

-Refer to the graph above to answer this question.What are the break-even level(s)of output?

A fair-return price is a price set equal to a firm's lowest average cost.

The following table gives the cost and demand data for a particular market. -Refer to the above information to answer this question.Suppose that the data describes a monopoly industry.What will be the total profits or loss at the profit-maximizing output?

All of the following statements,except one,are true about a monopolist.Which is the exception?

Which of the following is true?

Suppose that a perfectly competitive industry is monopolized.If the costs of production remain unchanged,which of the following statements is correct?

Which of the following statements regarding the definition of a monopoly market is incorrect?

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 and is maximizing its total revenue,what will be the resulting total profit or loss?

The following table shows the demand facing an unregulated monopolist: -Refer to the above information to answer this question.What is the average revenue of the 5^th unit?

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 maximum total revenue?

Table 10.3 shows the demand and total cost for Zeta,a monopolist. Table 10.3 a)What is the profit maximizing level of output and price? b)What is value of marginal cost and marginal revenue at profit maximization?

Which of the following markets most closely resembles a monopoly?

The following table gives the cost and demand data for a particular market. -Refer to the above information to answer this question.Suppose that the data describes a perfectly competitive industry.What will be the equilibrium price and output?

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

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

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 break-even level (s)of output?

If price were set equal to MC,as shown in the graph above,consumer surplus would be what amount?

Distinguish between the marginal revenue for a perfectly competitive firm and that of a monopolist.

All of the following,except one,are ways that the monopolist's activities might be threatened.Which is the exception?

Figure 10.10 depicts the cost and revenue curves for a monopolist. -Refer to Figure 10.10 to answer this question.What is the level of profits at the profit-maximizing output?

All of the following,except one,are true at the output where a monopolist's marginal revenue is equal to zero? Which is the exception?

-Refer to the graph above to answer this question.What are the break-even level(s)of output?

A fair-return price is a price set equal to a firm's lowest average cost.

The following table gives the cost and demand data for a particular market. -Refer to the above information to answer this question.Suppose that the data describes a monopoly industry.What will be the total profits or loss at the profit-maximizing output?

All of the following statements,except one,are true about a monopolist.Which is the exception?

Which of the following is true?

Suppose that a perfectly competitive industry is monopolized.If the costs of production remain unchanged,which of the following statements is correct?

Which of the following statements regarding the definition of a monopoly market is incorrect?

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 and is maximizing its total revenue,what will be the resulting total profit or loss?

The following table shows the demand facing an unregulated monopolist: -Refer to the above information to answer this question.What is the average revenue of the 5th unit?

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 maximum total revenue?

Table 10.3 shows the demand and total cost for Zeta,a monopolist. Table 10.3 a)What is the profit maximizing level of output and price? b)What is value of marginal cost and marginal revenue at profit maximization?

Which of the following markets most closely resembles a monopoly?

The following table gives the cost and demand data for a particular market. -Refer to the above information to answer this question.Suppose that the data describes a perfectly competitive industry.What will be the equilibrium price and output?

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

The following table shows the demand facing an unregulated monopolist: -Refer to the above information to answer this question.What is the average revenue of the 5^th unit?