Question 1

The following graph shows the average and marginal revenue curves for a monopolist:
  
-Refer to the graph above to answer this question.At what output is total revenue maximized?

Accepted Answer

A) 30. 
B) 40. 
C) 50. 
D) 60. 
A) 30. 
B) 40. 
C) 50. 
D) 60.

Question 2

A monopolist will only be able to make a profit if,at some output level,the average revenue exceeds the average cost.

Accepted Answer

A) True 
 B)False

Question 3

The market imperfection brought about by monopoly is referred to as:

Accepted Answer

A) price discrimination. 
B) reduction in output through government regulation. 
C) deadweight loss. 
D) monopoly's gain. 
A) price discrimination. 
B) reduction in output through government regulation. 
C) deadweight loss. 
D) monopoly's gain.

Question 4

Which of the following is an example of a technical barrier to entry?

Accepted Answer

A) Patent. 
B) Economies of scale. 
C) Licensing fee. 
D) Copyright. 
E) Sole ownership of a resource. 
A) Patent. 
B) Economies of scale. 
C) Licensing fee. 
D) Copyright. 
E) Sole ownership of a resource.

Question 5

Which of the following is a correct statement of the socially optimum price?

Accepted Answer

A) It is a price equal to the average cost. 
B) It is a price equal to the marginal cost. 
C) It is a price equal to the lowest average cost. 
D) It is a price equal to the marginal revenue. 
A) It is a price equal to the average cost. 
B) It is a price equal to the marginal cost. 
C) It is a price equal to the lowest average cost. 
D) It is a price equal to the marginal revenue.

Question 6

A patent is an example of a barrier to entry.

Accepted Answer

A) True 
 B)False

Question 7

All of the following,except one,are true at the output(s)where a monopolist breaks even.Which is the exception?

Accepted Answer

A) TC = TR. 
B) Profits are maximized. 
C) AR = AC. 
D) Economic profits are zero. 
A) TC = TR. 
B) Profits are maximized. 
C) AR = AC. 
D) Economic profits are zero.

Question 8

How many years of protection are granted to patents newly registered in Canada?

Accepted Answer

A) 10 years. 
B) 17 years. 
C) 20 years. 
D) 30 years. 
E) 50 years. 
A) 10 years. 
B) 17 years. 
C) 20 years. 
D) 30 years. 
E) 50 years.

Question 9

What is the key difference between a perfectly competitive firm and a monopolist with respect to price and marginal revenue?

Accepted Answer

The key difference has to do with the re

Question 10

What is meant by the term socially optimum price?

Accepted Answer

A) The price which ensures that the firm is able to make normal profits only. 
B) The price which ensures that the firm is able to make economic profits only. 
C) The price which ensures that the output will be produced at the lowest possible cost. 
D) The price which ensures the best allocation of products. 
E) A price equal to average cost. 
A) The price which ensures that the firm is able to make normal profits only. 
B) The price which ensures that the firm is able to make economic profits only. 
C) The price which ensures that the output will be produced at the lowest possible cost. 
D) The price which ensures the best allocation of products. 
E) A price equal to average cost.

Question 11

The table below shows the costs and demand for the Primrose Oil industry.
   a)If this were a perfectly competitive industry,what would be the price,output and total industry profit?
b)If,alternately,this were a monopoly industry,what would the price,output,and total profit?
Hint: Calculate [TR;MR;MC]

Accepted Answer

a)price = $62;output

Question 12

-Refer to Figure 10.11 to answer this question.Suppose this graph depicts a perfectly competitive industry.What will be the equilibrium price and output respectively?

Accepted Answer

A) $40 and 15. 
B) $40 and 30. 
C) $60 and 20. 
D) $60 and 25. 
E) $70 and 15. 
A) $40 and 15. 
B) $40 and 30. 
C) $60 and 20. 
D) $60 and 25. 
E) $70 and 15.

Question 13

-Refer to the graph above.Areas C and D represent:

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.

Question 14

The deadweight loss arising from the monopolization of a perfectly competitive industry is:

Accepted Answer

A) the transfer of consumer's surplus to the monopolist in the form of economic profit. 
B) the reduction in quantity supplied and the increase in product price. 
C) the gain in producer's surplus minus the loss in consumer's surplus. 
D) the net reduction in both consumer's and producer's surplus which is not captured by anyone. 
A) the transfer of consumer's surplus to the monopolist in the form of economic profit. 
B) the reduction in quantity supplied and the increase in product price. 
C) the gain in producer's surplus minus the loss in consumer's surplus. 
D) the net reduction in both consumer's and producer's surplus which is not captured by anyone.

Question 15

-Refer to Figure 10.11 to answer this question.Suppose this graph depicts a monopoly industry.What will be the profit-maximizing price and output respectively?

Accepted Answer

A) $40 and 15. 
B) $40 and 30. 
C) $60 and 20. 
D) $60 and 25. 
E) $70 and 15. 
A) $40 and 15. 
B) $40 and 30. 
C) $60 and 20. 
D) $60 and 25. 
E) $70 and 15.

Question 16

What is the term used for those goods and services which are regarded as essential and which are therefore usually provided by the government?

Accepted Answer

A) Merit goods. 
B) Private utilities 
C) Public utilities 
D) Market goods 
A) Merit goods. 
B) Private utilities 
C) Public utilities 
D) Market goods

Question 17

The following data refers to an unregulated monopolist:
  
-Refer to the above information to answer this question.What is the profit-maximizing price?

Accepted Answer

A) $0. 
B) $30. 
C) $35. 
D) $50. 
E) $140. 
A) $0. 
B) $30. 
C) $35. 
D) $50. 
E) $140.

Question 18

All of the following except one are features of patent legislation.Which is the exception?

Accepted Answer

A) It gives a monopoly to the patent holder. 
B) It creates a barrier to entry. 
C) It guarantees that the patent holder will make economic profits. 
D) It is designed to encourage research and development. 
E) It is a source of monopoly power. 
A) It gives a monopoly to the patent holder. 
B) It creates a barrier to entry. 
C) It guarantees that the patent holder will make economic profits. 
D) It is designed to encourage research and development. 
E) It is a source of monopoly power.

Question 19

At any given output the marginal revenue of the monopolist may be equal to,greater than,or less than its average revenue.

Accepted Answer

A) True 
 B)False

The following graph shows the average and marginal revenue curves for a monopolist: -Refer to the graph above to answer this question.At what output is total revenue maximized?

A monopolist will only be able to make a profit if,at some output level,the average revenue exceeds the average cost.

The market imperfection brought about by monopoly is referred to as:

Which of the following is an example of a technical barrier to entry?

Which of the following is a correct statement of the socially optimum price?

A patent is an example of a barrier to entry.

All of the following,except one,are true at the output(s)where a monopolist breaks even.Which is the exception?

How many years of protection are granted to patents newly registered in Canada?

What is the key difference between a perfectly competitive firm and a monopolist with respect to price and marginal revenue?

What is meant by the term socially optimum price?

The table below shows the costs and demand for the Primrose Oil industry. a)If this were a perfectly competitive industry,what would be the price,output and total industry profit? b)If,alternately,this were a monopoly industry,what would the price,output,and total profit? Hint: Calculate [TR;MR;MC]

-Refer to Figure 10.11 to answer this question.Suppose this graph depicts a perfectly competitive industry.What will be the equilibrium price and output respectively?

-Refer to the graph above.Areas C and D represent:

The deadweight loss arising from the monopolization of a perfectly competitive industry is:

-Refer to Figure 10.11 to answer this question.Suppose this graph depicts a monopoly industry.What will be the profit-maximizing price and output respectively?

What is the term used for those goods and services which are regarded as essential and which are therefore usually provided by the government?

The following data refers to an unregulated monopolist: -Refer to the above information to answer this question.What is the profit-maximizing price?

All of the following except one are features of patent legislation.Which is the exception?

At any given output the marginal revenue of the monopolist may be equal to,greater than,or less than its average revenue.

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 shows the average and marginal revenue curves for a monopolist: -Refer to the graph above to answer this question.At what output is total revenue maximized?

A monopolist will only be able to make a profit if,at some output level,the average revenue exceeds the average cost.

The market imperfection brought about by monopoly is referred to as:

Which of the following is an example of a technical barrier to entry?

Which of the following is a correct statement of the socially optimum price?

A patent is an example of a barrier to entry.

All of the following,except one,are true at the output(s)where a monopolist breaks even.Which is the exception?

How many years of protection are granted to patents newly registered in Canada?

What is the key difference between a perfectly competitive firm and a monopolist with respect to price and marginal revenue?

What is meant by the term socially optimum price?

The table below shows the costs and demand for the Primrose Oil industry. a)If this were a perfectly competitive industry,what would be the price,output and total industry profit? b)If,alternately,this were a monopoly industry,what would the price,output,and total profit? Hint: Calculate [TR;MR;MC]

-Refer to Figure 10.11 to answer this question.Suppose this graph depicts a perfectly competitive industry.What will be the equilibrium price and output respectively?

-Refer to the graph above.Areas C and D represent:

The deadweight loss arising from the monopolization of a perfectly competitive industry is:

-Refer to Figure 10.11 to answer this question.Suppose this graph depicts a monopoly industry.What will be the profit-maximizing price and output respectively?

What is the term used for those goods and services which are regarded as essential and which are therefore usually provided by the government?

The following data refers to an unregulated monopolist: -Refer to the above information to answer this question.What is the profit-maximizing price?

All of the following except one are features of patent legislation.Which is the exception?

At any given output the marginal revenue of the monopolist may be equal to,greater than,or less than its average revenue.

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