Exam 8: Technology, production, and Costs

Consider the following characteristics: a.a market structure with barriers to entry b.demand curves that are easily identified c.firm cannot make zero profits in the long run d.firm can reap long-run profits. Which of the characteristics in the list above are shared by an oligopolist and a monopolist?

There are several types of barriers to entry that can create a monopoly.Which of the following barriers is the result of government action?

Figure 8-10 -Refer to Figure 8-10.What is the area that represents consumer surplus under a monopoly?

The size of a deadweight loss in a market is reduced by

Explain whether a monopoly that maximises profit will also be maximising revenue and production.

Figure 8-9 Figure 8-9 shows the demand and cost curves for a monopolist. -Refer to Figure 8-9.What is the difference between the monopoly output and the perfectly competitive output?

The ability of a firm to charge a price greater than marginal cost is called

A perfectly competitive firm cannot practice price discrimination because

Consider the following pricing strategies: a.perfect price discrimination b.charging different prices to different groups of customers c.optimal two-part tariff d.single-price monopoly pricing Which of the pricing strategies allows a producer to capture the entire consumer surplus that would have gone to consumers under perfect competitive pricing?

Online companies gather personal information about the customers who shop on their websites,and some of those companies will use the data to estimate price elasticities of their customers.Doing this is a way that these companies might be able to charge a higher price for a product to those customers who have a ________ price elasticity of demand.

Figure 8-2 Figure 8-2 above shows the demand and cost curves facing a monopolist. -Refer to Figure 8-2.If the firm's average total cost curve is ATC1,the firm will

Consider the following actions undertaken by a firm: a.charging the same price for products of different quality b.charging different prices to different consumers for the same product when the variation cannot be explained by cost differences c.charging different prices for products of different qualities d.charging a lower price to match a competitor's price Which of the above will be considered price discrimination?

A firm that has the ability to control to some degree the price of the product it sells

For a natural monopoly to exist

Figure 8-10 -Refer to Figure 8-10.Compared to a perfectly competitive market,consumer surplus is lower in a monopoly by an amount equal to the

Holding everything else constant,government approval of horizontal mergers is more likely to be granted if the 'market' that firms are in is broadly defined rather than narrowly defined.

Which of the following is not a requirement for a successful price discrimination strategy?

Figure 8-13 Figure 8-13 shows the market demand and cost curves facing a natural monopoly. -Refer to Figure 8-13.Suppose the government regulates this industry in order to remove the inefficiency implied by the behaviour of the profit-maximising owners.If regulators require that the firm produces the economically efficient output level,what is this level and what price will be charged?

Book publishers use price discrimination routinely,but the form of price discrimination they use is different to the form used by airlines and other industries.Explain.

Joss is a marketing consultant.Iris and Daphne are potential customers interested in commissioning Joss to undertake a market survey and compile the findings in a report.Iris is willing to pay $500 for the service while Daphne is willing to pay $800.Suppose that the opportunity cost of Joss's time is $1200.Assume that Iris and Daphne do not know each other.If the price is $800 per copy,