Question 1

The amount that producers receive for a good minus their costs of producing it equals

Accepted Answer

A)   quantity supplied.
B)   supply price.
C)   deadweight loss.
D)   producer surplus.E) None of the above
F) A) and D)

Question 2

Which of the following statements is not correct?

Accepted Answer

A)   The government may use antitrust laws to break up an existing company to improve competition.
B)   The government may break up a natural monopoly to lower the price charged to customers.
C)   Private ownership is typically preferred to public ownership.
D)   Sometimes the best strategy is for the government to do nothing about monopoly inefficiency because the "fix" may be worse than the problem.E) B) and D)
F) A) and B)

Question 3

Most markets are not monopolies in the real world because

Accepted Answer

A)   firms usually face downward-sloping demand curves.
B)   supply curves slope upward.
C)   firms usually equate price with marginal cost.
D)   there are reasonable substitutes for most goods.E) A) and D)
F) A) and B)

Question 4

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 5

Amanda inherited the only local cable TV company in town after her father passed away.The company is completely unregulated by the government and is therefore free to operate as it wishes.Assume that Amanda understands the true power of her new monopoly.Which of the following statements is (are) correct? (i) 
She will be able to set the price of cable TV service at whatever level she wishes.
(ii) 
The customers will be forced to purchase cable TV service at whatever price she wants to set.
(iii) 
She will be able to achieve any profit level that she desires.

Accepted Answer

A)   (i) only
B)   (ii) only
C)   (i) and (iii) only
D)   (i) , (ii) ,and (iii) E) A) and C)
F) A) and D)

Question 6

Table 15-1
A monopolist faces the following demand curve:
  Marginal cost is constant at $8 per unit.
-Refer to Table 15-1.Suppose the firm depicted in the table is selling a prescription drug for which it had a patent,but the patent has expired.As new firms enter the market and sell the generic version of this drug competitively,what quantity will be sold?

Accepted Answer

A)   3 units
B)   4 units
C)   5 units
D)   6 unitsE) All of the above
F) A) and B)

Question 7

In reality,perfect price discrimination is

Accepted Answer

A)   used by about 75 percent of all monopolies.
B)   used by about 50 percent of all monopolies.
C)   seldom used by monopolies because it leads to lower profits.
D)   rarely possible.E) A) and B)
F) A) and C)

Question 8

Figure 15-2    
-Refer to Figure 15-2.Which of the following statements is correct?

Accepted Answer

A)   Panel C represents the typical demand curve for a perfectly competitive firm,and Panel B represents the typical demand curve for a monopoly.
B)   Panel B represents the typical demand curve for a perfectly competitive firm,and Panel C represents the typical demand curve for a monopoly.
C)   Panel A represents the typical demand curve for a perfectly competitive firm,and Panel B represents the typical demand curve for a monopoly.
D)   Panel C represents the typical demand curve for a perfectly competitive firm,and Panel D represents the typical demand curve for a monopoly.E) B) and C)
F) None of the above

Question 9

A monopolist's profits with price discrimination will be

Accepted Answer

A)   lower than if the firm charged a single,profit-maximizing price
B)   the same as if the firm charged a single,profit-maximizing price.
C)   higher than if the firm charged just one price because the firm will capture more consumer surplus.
D)   higher than if the firm charged a single price because the costs of selling the good will be lower.E) B) and C)
F) A) and D)

Question 10

Table 15-1
A monopolist faces the following demand curve:
  Marginal cost is constant at $8 per unit.
-Refer to Table 15-1.The monopolist's total revenue from selling 4 units of output is

Accepted Answer

A)   $4.
B)   $16.
C)   $32.
D)   $48.E) A) and C)
F) A) and D)

Question 11

One problem with government operation of monopolies is that

Accepted Answer

A)   a benevolent government is likely to be interested in generating profits for political gain.
B)   monopolies typically have rising average costs.
C)   the government typically has little incentive to reduce costs.
D)   a government-regulated outcome will increase the profitability of the monopoly.E) A) and C)
F) B) and C)

Question 12

Suppose a firm has a monopoly on the sale of a computer game and faces a downward-sloping demand curve.When selling the 50th game,the firm will always receive

Accepted Answer

A)   less marginal revenue on the 50th game than it received on the 49th game.
B)   more average revenue on the 50th game than it received on the 49th game.
C)   more total revenue on the 50 game than it received on the first 49 game.
D)   Both b and c are correct.E) A) and B)
F) A) and D)

Question 13

Figure 15-16 
-Refer to Figure 15-16.If the monopoly firm perfectly price discriminates,then the deadweight loss amounts to

Accepted Answer

A)   $0.
B)   $1,562.50.
C)   $3,125.
D)   $6,250.E) None of the above
F) C) and D)

Question 14

If government officials break a natural monopoly up into several smaller firms,then

Accepted Answer

A)   competition will force firms to attain economic profits rather than accounting profits.
B)   competition will force firms to produce surplus output,which drives up price.
C)   the average costs of production will increase.
D)   the average costs of production will decrease.E) B) and D)
F) C) and D)

Question 15

Table 15-4
A monopolist faces the following demand curve:
 
-Refer to Table 15-4.If the monopolist produces 5 units,what is its marginal revenue?

Accepted Answer

A)   $100
B)   $37.5
C)   $15
D)   $2.50E) A) and B)
F) A) and C)

Question 16

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

Accepted Answer

A)   consumer surplus
B)   deadweight loss
C)   market power
D)   arbitrageE) B) and D)
F) C) and D)

Question 17

A monopolist that can practice perfect price discrimination will not impose a deadweight loss on society.

Accepted Answer

A) True 
 B)False

Question 18

Table 15-10
The monopolist faces the following demand curve:
 
-Refer to Table 15-10.If the monopolist has total fixed costs of $40 and a constant marginal cost of $5,what is the profit-maximizing level of output?

Accepted Answer

A)   7 units
B)   16 units
C)   23 units
D)   31 unitsE) A) and B)
F) A) and C)

Question 19

By selling hardcover books to die-hard fans and paperback books to less enthusiastic readers,the publisher is able to price discriminate and raise its profits.

Accepted Answer

A) True 
 B)False

Question 20

At the profit-maximizing quantity of output for a monopolist,average revenue,marginal revenue,and price are all equal.

Accepted Answer

A) True 
 B)False

Exam 15: Monopoly

A monopolist that can practice perfect price discrimination will not impose a deadweight loss on society.

Correct Answer
verified

In reality,perfect price discrimination is

Correct Answer
verified

One problem with government operation of monopolies is that

Correct Answer
verified

If government officials break a natural monopoly up into several smaller firms,then

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
verified

Table 15-4 A monopolist faces the following demand curve: -Refer to Table 15-4.If the monopolist produces 5 units,what is its marginal revenue?

Correct Answer
verified

The amount that producers receive for a good minus their costs of producing it equals

Correct Answer
verified

Correct Answer
verified

Table 15-10 The monopolist faces the following demand curve: -Refer to Table 15-10.If the monopolist has total fixed costs of $40 and a constant marginal cost of $5,what is the profit-maximizing level of output?

Correct Answer
verified

At the profit-maximizing quantity of output for a monopolist,average revenue,marginal revenue,and price are all equal.

Correct Answer
verified

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

Correct Answer
verified

Which of the following statements is not correct?

Correct Answer
verified

Suppose a firm has a monopoly on the sale of a computer game and faces a downward-sloping demand curve.When selling the 50^th game,the firm will always receive

Correct Answer
verified

Figure 15-2 -Refer to Figure 15-2.Which of the following statements is correct?

Correct Answer
verified

A monopolist's profits with price discrimination will be

Correct Answer
verified

By selling hardcover books to die-hard fans and paperback books to less enthusiastic readers,the publisher is able to price discriminate and raise its profits.

Correct Answer
verified

Correct Answer
verified

Figure 15-16 -Refer to Figure 15-16.If the monopoly firm perfectly price discriminates,then the deadweight loss amounts to

Correct Answer
verified

Most markets are not monopolies in the real world because

Correct Answer
verified

Table 15-1 A monopolist faces the following demand curve: Marginal cost is constant at $8 per unit. -Refer to Table 15-1.The monopolist's total revenue from selling 4 units of output is

Correct Answer
verified

Exam 15: Monopoly

A monopolist that can practice perfect price discrimination will not impose a deadweight loss on society.

Correct AnswerverifiedShow Answer

In reality,perfect price discrimination is

Correct AnswerverifiedShow Answer

One problem with government operation of monopolies is that

Correct AnswerverifiedShow Answer

If government officials break a natural monopoly up into several smaller firms,then

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

Table 15-4 A monopolist faces the following demand curve: -Refer to Table 15-4.If the monopolist produces 5 units,what is its marginal revenue?

Correct AnswerverifiedShow Answer

The amount that producers receive for a good minus their costs of producing it equals

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Table 15-10 The monopolist faces the following demand curve: -Refer to Table 15-10.If the monopolist has total fixed costs of $40 and a constant marginal cost of $5,what is the profit-maximizing level of output?

Correct AnswerverifiedShow Answer

At the profit-maximizing quantity of output for a monopolist,average revenue,marginal revenue,and price are all equal.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following statements is not correct?

Correct AnswerverifiedShow Answer

Suppose a firm has a monopoly on the sale of a computer game and faces a downward-sloping demand curve.When selling the 50th game,the firm will always receive

Correct AnswerverifiedShow Answer

Figure 15-2 -Refer to Figure 15-2.Which of the following statements is correct?

Correct AnswerverifiedShow Answer

A monopolist's profits with price discrimination will be

Correct AnswerverifiedShow Answer

By selling hardcover books to die-hard fans and paperback books to less enthusiastic readers,the publisher is able to price discriminate and raise its profits.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 15-16 -Refer to Figure 15-16.If the monopoly firm perfectly price discriminates,then the deadweight loss amounts to

Correct AnswerverifiedShow Answer

Most markets are not monopolies in the real world because

Correct AnswerverifiedShow Answer

Table 15-1 A monopolist faces the following demand curve: Marginal cost is constant at $8 per unit. -Refer to Table 15-1.The monopolist's total revenue from selling 4 units of output is

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Suppose a firm has a monopoly on the sale of a computer game and faces a downward-sloping demand curve.When selling the 50^th game,the firm will always receive

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified