Question 1

A monopolist charges a price that is ________ and produces ________ than a perfect competitor.

Accepted Answer

A)  lower; less
B)  higher; less
C)  higher; more
D)  lower; more

Question 2

A pure monopolist is selling 7 units at a price of $12.If the marginal revenue of the 8th unit is $4,then the price of the 8th unit is

Accepted Answer

A)  $10.
B)  $11.
C)  greater than $12.
D)  $4.

Question 3

Economies of scale will lead to only one firm in the industry because

Accepted Answer

A)  by increasing output a firm is able to lower the cost per unit and change lower prices driving smaller firms out of business.
B)  one firm has an average cost curve,which has shifted below the average cost curves of its competitors.
C)  there are governmental entry restrictions.
D)  of government licensing.

Question 4

For a monopoly earning positive economic profits at the profit-maximizing output level,all of the following are true EXCEPT

Accepted Answer

A)  P > ATC.
B)  P > MR.
C)  P > MC.
D)  P = MR.

Question 5

Suppose that a perfect-maximizing monopolist operates with a horizontal marginal cost curve and no fixed costs.Which of the following would NOT be represented as part of the area between its demand curve and marginal cost curve?

Accepted Answer

A)  total costs
B)  economic profits
C)  consumer surplus
D)  deadweight loss

Question 6

To induce an increase in the quantity demanded of its product,a monopolist must reduce the

Accepted Answer

A)  quality of its product and thereby generate a downward shift its ATC curve.
B)  price of its product and thereby generate a rightward shift in its demand curve.
C)  price of its product and thereby generate a rightward movement along its demand curve.
D)  quality of its product and thereby generate a downward movement along its ATC curve.

Question 7

-Refer to the above figure.Profits for this firm are

Accepted Answer

A)  positive and equal to  P2P _ { 2 }P2​  P1P _ { 1 }P1​  ab.
B)  positive and equal to  P3\mathrm { P } _ { 3 }P3​  P1P _ { 1 }P1​  ac.
C)  negative and equal to  P3\mathrm { P } _ { 3 }P3​  P2P _ { 2 }P2​  bc.
D)  negative and equal to  0P3\mathrm { 0P } _ { 3 }0P3​  c Q1\mathrm { Q } _ { 1 }Q1​  .

Question 8

The social cost attached to monopolies is reflected by the fact that

Accepted Answer

A)  monopolies produce more output than consumers desire to buy.
B)  consumers pay prices that exceed the marginal cost of production.
C)  the demand for a monopolist's product is always lower than the demand for the products of perfectly competitive firms.
D)  consumers are always willing to pay lower prices for a monopolist's product than for the products of perfectly competitive firms. B

Question 9

Unlike a perfectly competitive firm,a monopolist faces a demand curve that is

Accepted Answer

A)  upward sloping.
B)  horizontal.
C)  vertical.
D)  downward sloping.

Question 10

If a monopolist wants to increase the amount it sells,it

Accepted Answer

A)  will keep the price the same.
B)  must lower the price on all units.
C)  must accept lower profits.
D)  must lower the cost of production. B

Question 11

The owner of a patented invention

Accepted Answer

A)  may or may not have a legal monopoly.
B)  is guaranteed a profit since her idea cannot be copied.
C)  will always have demand high enough and costs low enough to ensure a profit.
D)  will only earn a profit if average total cost is less than price.

Question 12

If a monopolist lowers its price,

Accepted Answer

A)  it lowers the barriers to entry.
B)  the quantity demanded increases.
C)  the quantity demanded remains the same.
D)  the quantity demanded decreases.

Question 13

Economic inefficiency exists when

Accepted Answer

A)  P = MR.
B)  P = MC.
C)  MR = MC.
D)  P > MC.

Question 14

-Use the above figure.The profit this monopolist earns is closest to

Accepted Answer

A)  $3,000.
B)  $4,800.
C)  $1,600.
D)  $1,000.

Question 15

5. B) Q1. C) Q3. D) Q2." class="answers-bank-image d-inline" rel="preload" >
-In the above figure,marginal cost and marginal revenue are equal at output

Accepted Answer

A)  Q5.
B)  Q1.
C)  Q3.
D)  Q2.

Question 16

If the price elasticity of demand for U.S.automobiles is higher in Europe than it is in the United States,and transport costs are zero,a price-discriminating monopolist would charge

Accepted Answer

A)  the same price for autos in the United States as in Europe.
B)  a lower price for autos in the United States than in Europe.
C)  a higher price for autos in the United States than in Europe.
D)  a less profitable price for autos in the United States than in Europe.

Question 17

Which of the following is LEAST likely to be able to regularly engage in price discrimination?

Accepted Answer

A)  a farmer
B)  an airline
C)  a university
D)  a producer of copyrighted computer software A

Question 18

Price  Quantity $191118121713161415151416\begin{array} { c c } 	ext { Price } & 	ext { Quantity } \\hline \$ 19 & 11 \18 & 12 \17 & 13 \16 & 14 \15 & 15 \14 & 16 \\hline\end{array} Price $191817161514​ Quantity 111213141516​​ 
-Given the data in the above table,the marginal revenue curve

Accepted Answer

A)  lies below the demand curve.
B)  lies above the demand curve.
C)  intersects the demand curve.
D)  is equal to the demand curve.

Question 19

If a monopolist raises its price,

Accepted Answer

A)  it raises the barriers to entry.
B)  the quantity demanded increases.
C)  the quantity demanded remains the same.
D)  the quantity demanded decreases.

Question 20

Which of the following is NOT a necessary condition for a firm to price discriminate?

Accepted Answer

A)  The firm must be able to separate markets.
B)  Buyers in different markets must have different elasticities of demand.
C)  Resale of the product must be preventable.
D)  The firm must be a price-taker.

Exam 11: Monopoly

A monopolist charges a price that is and produces than a perfect competitor.

Correct Answer
verified

A pure monopolist is selling 7 units at a price of $12.If the marginal revenue of the 8th unit is $4,then the price of the 8th unit is

Correct Answer
verified

Economies of scale will lead to only one firm in the industry because

Correct Answer
verified

For a monopoly earning positive economic profits at the profit-maximizing output level,all of the following are true EXCEPT

Correct Answer
verified

Suppose that a perfect-maximizing monopolist operates with a horizontal marginal cost curve and no fixed costs.Which of the following would NOT be represented as part of the area between its demand curve and marginal cost curve?

Correct Answer
verified

To induce an increase in the quantity demanded of its product,a monopolist must reduce the

Correct Answer
verified

Correct Answer
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The social cost attached to monopolies is reflected by the fact that

Correct Answer
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B

Unlike a perfectly competitive firm,a monopolist faces a demand curve that is

Correct Answer
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If a monopolist wants to increase the amount it sells,it

Correct Answer
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B

The owner of a patented invention

Correct Answer
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If a monopolist lowers its price,

Correct Answer
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Economic inefficiency exists when

Correct Answer
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-Use the above figure.The profit this monopolist earns is closest to

Correct Answer
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-In the above figure,marginal cost and marginal revenue are equal at output

Correct Answer
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If the price elasticity of demand for U.S.automobiles is higher in Europe than it is in the United States,and transport costs are zero,a price-discriminating monopolist would charge

Correct Answer
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Which of the following is LEAST likely to be able to regularly engage in price discrimination?

Correct Answer
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A

$\begin{array} { c c } \text { Price } & \text { Quantity } \\\hline \$ 19 & 11 \\18 & 12 \\17 & 13 \\16 & 14 \\15 & 15 \\14 & 16 \\\hline\end{array}$ -Given the data in the above table,the marginal revenue curve

Correct Answer
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If a monopolist raises its price,

Correct Answer
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Which of the following is NOT a necessary condition for a firm to price discriminate?

Correct Answer
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Exam 11: Monopoly

A monopolist charges a price that is ________ and produces ________ than a perfect competitor.

Correct AnswerverifiedShow Answer

A pure monopolist is selling 7 units at a price of $12.If the marginal revenue of the 8th unit is $4,then the price of the 8th unit is

Correct AnswerverifiedShow Answer

Economies of scale will lead to only one firm in the industry because

Correct AnswerverifiedShow Answer

For a monopoly earning positive economic profits at the profit-maximizing output level,all of the following are true EXCEPT

Correct AnswerverifiedShow Answer

Suppose that a perfect-maximizing monopolist operates with a horizontal marginal cost curve and no fixed costs.Which of the following would NOT be represented as part of the area between its demand curve and marginal cost curve?

Correct AnswerverifiedShow Answer

To induce an increase in the quantity demanded of its product,a monopolist must reduce the

Correct AnswerverifiedShow Answer

-Refer to the above figure.Profits for this firm are

Correct AnswerverifiedShow Answer

The social cost attached to monopolies is reflected by the fact that

Correct AnswerverifiedB

Unlike a perfectly competitive firm,a monopolist faces a demand curve that is

Correct AnswerverifiedShow Answer

If a monopolist wants to increase the amount it sells,it

Correct AnswerverifiedB

The owner of a patented invention

Correct AnswerverifiedShow Answer

If a monopolist lowers its price,

Correct AnswerverifiedShow Answer

Economic inefficiency exists when

Correct AnswerverifiedShow Answer

-Use the above figure.The profit this monopolist earns is closest to

Correct AnswerverifiedShow Answer

-In the above figure,marginal cost and marginal revenue are equal at output

Correct AnswerverifiedShow Answer

If the price elasticity of demand for U.S.automobiles is higher in Europe than it is in the United States,and transport costs are zero,a price-discriminating monopolist would charge

Correct AnswerverifiedShow Answer

Which of the following is LEAST likely to be able to regularly engage in price discrimination?

Correct AnswerverifiedA

Correct AnswerverifiedShow Answer

If a monopolist raises its price,

Correct AnswerverifiedShow Answer

Which of the following is NOT a necessary condition for a firm to price discriminate?

Correct AnswerverifiedShow Answer

A monopolist charges a price that is and produces than a perfect competitor.

Correct Answer
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B

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B

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A

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