Question 1

The practice of selling the same goods to different customers at different prices,but with the same marginal cost,is known as

Accepted Answer

A)   price segregation.
B)   price discrimination.
C)   arbitrage.
D)   monopoly pricing.

Question 2

A monopoly firm is a price

Accepted Answer

A)   taker and has no supply curve.
B)   maker and has no supply curve
C)   taker and has an upward-sloping supply curve.
D)   maker and has an upward-sloping supply curve.

Question 3

A monopoly creates a deadweight loss to society because it earns both short-run and long-run positive economic profits.

Accepted Answer

A) True 
 B)False

Question 4

Figure 14-8 
-Refer to Figure 14-8.To maximize total surplus,a benevolent social planner would choose which of the following outcomes?

Accepted Answer

A)   100 units of output and a price of $10 per unit
B)   150 units of output and a price of $10 per unit
C)   150 units of output and a price of $15 per unit
D)   200 units of output and a price of $10 per unit

Question 5

Figure 14-4 
-Refer to Figure 14-4.At the profit-maximizing level of output,

Accepted Answer

A)   marginal revenue is equal to P3.
B)   marginal cost is equal to P3.
C)   average revenue is equal to P4.
D)   average total cost is equal to P0.

Question 6

Suppose a monopolist charges a price of $27 for its product and sells 10 units at that price.At 10 units of production the firm has average fixed cost equal to $10 and average variable cost equal to $12.How much total profit is the firm earning at this price?

Accepted Answer

A)   $5
B)   $25
C)   $50
D)   $140

Exam 14: Monopoly

Suppose a monopolist charges a price of $27 for its product and sells 10 units at that price.At 10 units of production the firm has average fixed cost equal to $10 and average variable cost equal to $12.How much total profit is the firm earning at this price?

Correct Answer
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Figure 14-8 -Refer to Figure 14-8.To maximize total surplus,a benevolent social planner would choose which of the following outcomes?

Correct Answer
verified

The practice of selling the same goods to different customers at different prices,but with the same marginal cost,is known as

Correct Answer
verified

A monopoly creates a deadweight loss to society because it earns both short-run and long-run positive economic profits.

Correct Answer
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Figure 14-4 -Refer to Figure 14-4.At the profit-maximizing level of output,

Correct Answer
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A monopoly firm is a price

Correct Answer
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Exam 14: Monopoly

Suppose a monopolist charges a price of $27 for its product and sells 10 units at that price.At 10 units of production the firm has average fixed cost equal to $10 and average variable cost equal to $12.How much total profit is the firm earning at this price?

Correct AnswerverifiedShow Answer

Figure 14-8 -Refer to Figure 14-8.To maximize total surplus,a benevolent social planner would choose which of the following outcomes?

Correct AnswerverifiedShow Answer

The practice of selling the same goods to different customers at different prices,but with the same marginal cost,is known as

Correct AnswerverifiedShow Answer

A monopoly creates a deadweight loss to society because it earns both short-run and long-run positive economic profits.

Correct AnswerverifiedShow Answer

Figure 14-4 -Refer to Figure 14-4.At the profit-maximizing level of output,

Correct AnswerverifiedShow Answer

A monopoly firm is a price

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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