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Exam 15: Monopoly

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Question 1

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Figure 15-5 -Refer to Figure 15-5.What area measures the monopolist's profit?

A) (B-F) *K
B) (A-H) *J
C) (B-G) *K
D) 0.5[(B-F) *(L-K) ]

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Question 2

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Suppose a profit-maximizing monopolist faces a constant marginal cost of 20 dollars produces an output level of 100 units,and charges a price of 50 dollars.The socially efficient level of output is 200 units.Assume that the demand curve and marginal revenue curve are the typical downward-sloping straight lines.The monopoly deadweight loss equals 1,500 dollars.

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Question 3

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Financial aid to college students,quantity discounts,and senior citizen discounts are all examples of

For a profit-maximizing monopolist,

For a monopolist,when the output effect is greater than the price effect,marginal revenue is

A patent gives a single person or firm the exclusive right to sell some good or service forever.

In order for antitrust laws to raise social welfare,the government must

The economic inefficiency of a monopolist can be measured by the

Figure 15-3 -Refer to Figure 15-3.The average total cost curve for a monopoly firm is depicted by curve

Figure 15-7 -Refer to Figure 15-7.What area represents the total surplus lost due to monopoly pricing?

Patent and copyright laws are major sources of

A monopolist maximizes profit by producing an output level where marginal cost equals price.

For a monopoly,the socially efficient level of output occurs where

Figure 15-5 -Refer to Figure 15-5.What price will the monopolist charge?

Table 15-1 $\begin{array} { | c | c | c | c | c | } \hline \text { Quantity } & \begin{array} { c } \text { Price } \\\text { (Dinar) }\end{array} & \begin{array} { c } \text { Total } \\\text { Revenue } \\\text { (Dinar) }\end{array} & \begin{array} { c } \text { Average } \\\text { Revenue } \\\text { (Dinar) }\end{array} & \begin{array} { c } \text { Marginal } \\\text { Revenue } \\\text { (Dinar) }\end{array} \\\hline 1 & 35 & 35 & & \\\hline 2 & & 64 & 32 & 29 \\\hline 3 & 29 & & & \\\hline 4 & & & & 17 \\\hline 5 & 23 & & & 11\\\hline 6 & & 120 & & \\\hline 7 & 17 & & & - 1 \\\hline 8 & & & & - 7 \\\hline 9 & & 99 & 11 & - 13\\\hline 10 & & 80 & 8& \\\hline\end{array}$ -Refer to Table 15-1.If the monopolist wants to maximize its revenue,how many units of its product should it sell?

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

During the holiday season,high-end retailers frequently place a high price on merchandise on weekends and discount the price during the week.They do this because they believe that two groups of customers exist: shoppers with little free time and bargain hunters.Bargain hunters have time to shop around and frequently shop during the week.What do economists call this price strategy used by high-end retailers?

Which of the following can defeat the profit-maximizing strategy of price discrimination?

How does a competitive market compare to a monopoly that engages in perfect price discrimination?

Figure 15-1 -Refer to Figure 15-1.Considering the relationship between average total cost and marginal cost,the marginal cost curve for this firm