Question 1

Monopolists are price:

Accepted Answer

A)  Takers as are perfectly competitive firms. 
B)  Takers,but perfectly competitive firms are price makers. 
C)  Makers,but perfectly competitive firms are price takers. 
D)  Makers as are perfectly competitive firms. 
A)  Takers as are perfectly competitive firms. 
B)  Takers,but perfectly competitive firms are price makers. 
C)  Makers,but perfectly competitive firms are price takers. 
D)  Makers as are perfectly competitive firms.

Question 2

Figure 7.2:  
-In Figure 7.2,the price charged by a profit-maximizing monopolist is:

Accepted Answer

A)  $9.00. 
B)  $10.00. 
C)  $10.50. 
D)  $11.00 
A)  $9.00. 
B)  $10.00. 
C)  $10.50. 
D)  $11.00

Question 3

In which of the following industries is marginal cost pricing most likely?

Accepted Answer

A)  Wheat. 
B)  Automobiles. 
C)  Breakfast cereals. 
D)  Computer software. 
A)  Wheat. 
B)  Automobiles. 
C)  Breakfast cereals. 
D)  Computer software.

Question 4

In the following industries explain what barriers to entry each has in order to allow it to be a monopoly.
a)City of Eugene Water and Electric Board (EWEB)
b)Seattle Seahawks Football Team
c)U.S.Postal Service

Accepted Answer

EWEB has a government franchis

Question 5

As noted in the text,which of the following allowed Polaroid to win the monopoly power battle with Kodak?

Accepted Answer

A)  A government franchise. 
B)  Natural monopoly. 
C)  A patent. 
D)  Exclusive licensing. 
A)  A government franchise. 
B)  Natural monopoly. 
C)  A patent. 
D)  Exclusive licensing.

Question 6

The following table shows some costs and prices faced by a company that produces submarines.
Table 7.3  
-In Table 7.3,at an output rate of 4 submarines per year,marginal revenue is equal to:

Accepted Answer

A)  $30 million. 
B)  $60 million. 
C)  $70 million. 
D)  $240 million. 
A)  $30 million. 
B)  $60 million. 
C)  $70 million. 
D)  $240 million.

Question 7

Table 7.2-Monopoly costs and revenue  
-In Table 7.2,profit maximization is achieved at a rate of:

Accepted Answer

A)  1 unit of output. 
B)  2 units of output. 
C)  3 units of output. 
D)  4 units of output. 
A)  1 unit of output. 
B)  2 units of output. 
C)  3 units of output. 
D)  4 units of output.

Question 8

The argument that concentration of market power enhances research and development efforts may be weak because:

Accepted Answer

A)  Monopolies cannot afford basic research. 
B)  No one has attempted to gather any empirical evidence. 
C)  A monopoly may have no clear incentive to pursue new research and development. 
D)  No existing monopoly has a research and development program. 
A)  Monopolies cannot afford basic research. 
B)  No one has attempted to gather any empirical evidence. 
C)  A monopoly may have no clear incentive to pursue new research and development. 
D)  No existing monopoly has a research and development program.

Question 9

Which of the following is not true about barriers to entry?

Accepted Answer

A)  They allow a firm to control or restrict the amount of goods supplied in the market. 
B)  They allow a firm to earn economic profit in the long run. 
C)  They cause price to be lower and output higher than if they didn't exist. 
D)  They make it difficult for potential producers to enter a given market. 
A)  They allow a firm to control or restrict the amount of goods supplied in the market. 
B)  They allow a firm to earn economic profit in the long run. 
C)  They cause price to be lower and output higher than if they didn't exist. 
D)  They make it difficult for potential producers to enter a given market.

Question 10

Patents,legal harassment,and bundling products are all examples of barriers to entry in monopoly markets.

Accepted Answer

A) True 
 B)False

Question 11

In some situations a monopoly might be considered more desirable than a perfectly competitive firm:

Accepted Answer

A)  Because a monopoly has more incentive to keep costs down. 
B)  Because a monopoly is the best way to increase output above the competitive level of production. 
C)  If economies of scale exist and can only be realized by a single firm. 
D)  Since price is less than marginal revenue for a monopoly. 
A)  Because a monopoly has more incentive to keep costs down. 
B)  Because a monopoly is the best way to increase output above the competitive level of production. 
C)  If economies of scale exist and can only be realized by a single firm. 
D)  Since price is less than marginal revenue for a monopoly.

Question 12

The demand curve for an individual monopolist:

Accepted Answer

A)  Does not exist. 
B)  Slopes upward to the right. 
C)  Is the same as the market demand curve. 
D)  Is the same as the marginal revenue curve. 
A)  Does not exist. 
B)  Slopes upward to the right. 
C)  Is the same as the market demand curve. 
D)  Is the same as the marginal revenue curve.

Question 13

In an oligopoly,one firm controls the entire market.

Accepted Answer

A) True 
 B)False

Question 14

Marginal cost pricing refers to the:

Accepted Answer

A)  Offer of goods at prices equal to their marginal cost. 
B)  Sale of goods at the highest possible price. 
C)  Rate of output at which marginal cost equals marginal revenue. 
D)  Offer of goods at a price above marginal cost. 
A)  Offer of goods at prices equal to their marginal cost. 
B)  Sale of goods at the highest possible price. 
C)  Rate of output at which marginal cost equals marginal revenue. 
D)  Offer of goods at a price above marginal cost.

Question 15

The price charged by a profit-maximizing monopolist occurs at:

Accepted Answer

A)  The minimum of the average total cost curve. 
B)  The price where marginal cost equals marginal revenue. 
C)  A price on the demand curve above the intersection where marginal revenue equals marginal cost. 
D)  A price on the average cost curve below the point where marginal revenue equals marginal cost. 
A)  The minimum of the average total cost curve. 
B)  The price where marginal cost equals marginal revenue. 
C)  A price on the demand curve above the intersection where marginal revenue equals marginal cost. 
D)  A price on the average cost curve below the point where marginal revenue equals marginal cost.

Question 16

A NEWSWIRE article in the text,titled "Music Firms Settle Lawsuit" discusses price fixing by music companies and retailers.Which market structure is most likely to be successful in price fixing?

Accepted Answer

A)  Monopolistic competition but not perfect competition. 
B)  Perfect competition but not monopoly. 
C)  Oligopoly but not perfect competition. 
D)  Perfect competition but not monopolistic competition. 
A)  Monopolistic competition but not perfect competition. 
B)  Perfect competition but not monopoly. 
C)  Oligopoly but not perfect competition. 
D)  Perfect competition but not monopolistic competition.

Question 17

Marginal revenue is the additional revenue from producing one more unit of output.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is an advantage of the competitive market structure?

Accepted Answer

A)  Competitive firms have greater ability to pursue research and development. 
B)  Larger companies can produce goods more efficiently than smaller firms. 
C)  Competitive firms practice marginal cost pricing. 
D)  Competitive firms make better use of economies of scale. 
A)  Competitive firms have greater ability to pursue research and development. 
B)  Larger companies can produce goods more efficiently than smaller firms. 
C)  Competitive firms practice marginal cost pricing. 
D)  Competitive firms make better use of economies of scale.

Question 19

Which of the following is consistent with a competitive industry?

Accepted Answer

A)  Marginal cost pricing. 
B)  High barriers to entry. 
C)  Economic profit in the long run. 
D)  Production and supplies are constrained. 
A)  Marginal cost pricing. 
B)  High barriers to entry. 
C)  Economic profit in the long run. 
D)  Production and supplies are constrained.

Question 20

Figure 7.2:  
-In Figure 7.2,the profit-maximizing level of output for a monopolist is:

Accepted Answer

A)  3 units. 
B)  4 units. 
C)  Between 3 and 4 units. 
D)  Between 4 and 5 units. 
A)  3 units. 
B)  4 units. 
C)  Between 3 and 4 units. 
D)  Between 4 and 5 units.

Monopolists are price:

Figure 7.2: -In Figure 7.2,the price charged by a profit-maximizing monopolist is:

In which of the following industries is marginal cost pricing most likely?

In the following industries explain what barriers to entry each has in order to allow it to be a monopoly. a)City of Eugene Water and Electric Board (EWEB) b)Seattle Seahawks Football Team c)U.S.Postal Service

As noted in the text,which of the following allowed Polaroid to win the monopoly power battle with Kodak?

The following table shows some costs and prices faced by a company that produces submarines. Table 7.3 -In Table 7.3,at an output rate of 4 submarines per year,marginal revenue is equal to:

Table 7.2-Monopoly costs and revenue -In Table 7.2,profit maximization is achieved at a rate of:

The argument that concentration of market power enhances research and development efforts may be weak because:

Which of the following is not true about barriers to entry?

Patents,legal harassment,and bundling products are all examples of barriers to entry in monopoly markets.

In some situations a monopoly might be considered more desirable than a perfectly competitive firm:

The demand curve for an individual monopolist:

In an oligopoly,one firm controls the entire market.

Marginal cost pricing refers to the:

The price charged by a profit-maximizing monopolist occurs at:

A NEWSWIRE article in the text,titled "Music Firms Settle Lawsuit" discusses price fixing by music companies and retailers.Which market structure is most likely to be successful in price fixing?

Marginal revenue is the additional revenue from producing one more unit of output.

Which of the following is an advantage of the competitive market structure?

Which of the following is consistent with a competitive industry?

Figure 7.2: -In Figure 7.2,the profit-maximizing level of output for a monopolist is:

The Challenge of Economics

The US Economy

Supply and Demand

Consumer Demand

Supply Decisions

Competition

The Labor Market

Government Intervention

The Business Cycle

Aggregate Supply and Demand

Fiscal Policy

Money and Banks

Monetary Policy

Economic Growth

Theory and Reality

International Trade

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Exam 7: Monopoly

Monopolists are price:

Figure 7.2: -In Figure 7.2,the price charged by a profit-maximizing monopolist is:

In which of the following industries is marginal cost pricing most likely?

In the following industries explain what barriers to entry each has in order to allow it to be a monopoly. a)City of Eugene Water and Electric Board (EWEB) b)Seattle Seahawks Football Team c)U.S.Postal Service

As noted in the text,which of the following allowed Polaroid to win the monopoly power battle with Kodak?

The following table shows some costs and prices faced by a company that produces submarines. Table 7.3 -In Table 7.3,at an output rate of 4 submarines per year,marginal revenue is equal to:

Table 7.2-Monopoly costs and revenue -In Table 7.2,profit maximization is achieved at a rate of:

The argument that concentration of market power enhances research and development efforts may be weak because:

Which of the following is not true about barriers to entry?

Patents,legal harassment,and bundling products are all examples of barriers to entry in monopoly markets.

In some situations a monopoly might be considered more desirable than a perfectly competitive firm:

The demand curve for an individual monopolist:

In an oligopoly,one firm controls the entire market.

Marginal cost pricing refers to the:

The price charged by a profit-maximizing monopolist occurs at:

A NEWSWIRE article in the text,titled "Music Firms Settle Lawsuit" discusses price fixing by music companies and retailers.Which market structure is most likely to be successful in price fixing?

Marginal revenue is the additional revenue from producing one more unit of output.

Which of the following is an advantage of the competitive market structure?

Which of the following is consistent with a competitive industry?

Figure 7.2: -In Figure 7.2,the profit-maximizing level of output for a monopolist is:

The Challenge of Economics

The US Economy

Supply and Demand

Consumer Demand

Supply Decisions

Competition

The Labor Market

Government Intervention

The Business Cycle

Aggregate Supply and Demand

Fiscal Policy

Money and Banks

Monetary Policy

Economic Growth

Theory and Reality

International Trade

Filters