Question 1

Output  Price 1$302$273$244$215$18\begin{array} { c c } 	ext { Output } & 	ext { Price } \\hline 1 & \$ 30 \2 & \$ 27 \3 & \$ 24 \4 & \$ 21 \5 & \$ 18\end{array} Output 12345​ Price $30$27$24$21$18​​ 
-The marginal revenue that would be derived from the production of the fifth unit is

Accepted Answer

A)  $24
B)  $21
C)  $12
D)  $6
E)  $3

Question 2

Which is the most accurate statement?

Accepted Answer

A)  There are no limits to monopoly power.
B)  The market limits monopoly power through the development of substitutes.
C)  If there were just one wheat farm in the United States,it would have a natural monopoly.
D)  There is no way that we can justify the existence of monopolies.

Question 3

A monopolist operates at the minimum point of its ATC curve

Accepted Answer

A)  only in the short run.
B)  only in the long run.
C)  in both the short run and the long run.
D)  in neither the short run nor the long run.

Question 4

-The monopolist shown in the above graph

Accepted Answer

A)  is making a profit.
B)  is taking a loss.
C)  is breaking even.
D)  may be making a profit or breaking even.
E)  may be taking a loss or breaking even.

Question 5

When the Wrigley family owned the Chicago Cubs,the team was operating in the _________ run since,year in,year out,the team lost money.

Accepted Answer

The answer of When the Wrigley family owned the Chicago...

Question 6

-If the firm were operating at optimal efficiency it would have an output of

Accepted Answer

A)  OI.
B)  OJ.
C)  OK.
D)  OL.

Question 7

Output  Price 1$20218316414512\begin{array} { c r } 	ext { Output } & 	ext { Price } \1 & \$ 20 \2 & 18 \3 & 16 \4 & 14 \5 & 12\end{array} Output 12345​ Price $2018161412​ 
-If the marginal cost were $16,output would be

Accepted Answer

A)  1.
B)  2.
C)  3.
D)  4.
E)  5.

Question 8

Statement I.Two ways to prevent public utilities from charging outrageous prices are (1) government regulation and (2) government ownership.
Statement II.Large firms always behave badly.

Accepted Answer

A)  Statement I is true and statement II is false.
B)  Statement II is true and statement I is false.
C)  Both statements are true.
D)  Both statements are false.

Question 9

If the firm were a perfect competitor,how much would its price be in the long run?

Accepted Answer

The answer of If the firm were a perfect competitor,how...

Question 10

Which statement is true?

Accepted Answer

A)  Monopolies tend to be inefficient.
B)  Most industries in the United States are monopolies.
C)  All electric power companies are natural monopolies that do not have any type of competition.
D)  Although big business has great economic power,that power is rarely translated into political power.

Question 11

Output  Price 1$302$273$244$215$18\begin{array} { c c } 	ext { Output } & 	ext { Price } \\hline 1 & \$ 30 \2 & \$ 27 \3 & \$ 24 \4 & \$ 21 \5 & \$ 18\end{array} Output 12345​ Price $30$27$24$21$18​​ 
-If the marginal cost were $18,output would be

Accepted Answer

A)  1
B)  2
C)  3
D)  4
E)  5

Question 12

When total revenue is at a maximum

Accepted Answer

A)  average revenue is zero.
B)  marginal revenue is zero.
C)  price is at a maximum.
D)  quantity sold is at a maximum.

Question 13

Which is the most accurate statement?

Accepted Answer

A)  All monopolists are very large companies.
B)  IBM is an example of a monopoly.
C)  In order to maintain monopolies,there must be barriers to market entry.
D)  Nearly all monopolies are very profitable.
E)  Public utilities are examples of natural monopolies.

Question 14

All of the following at one time had control over an essential resource that served as a barrier to entry except

Accepted Answer

A)  DeBeer's Diamond Company
B)  Standard Oil Company
C)  International Nickel Company of Canada
D)  IBM

Question 15

President Eisenhower warned us to "Beware of the __________."

Accepted Answer

military-i...

Question 16

-If profit-maximizing,this firm will charge a price of

Accepted Answer

A)  $8.
B)  $10.
C)  $12.
D)  $16.

Question 17

Which statement is false?

Accepted Answer

A)  Once a monopoly is set up,it is possible to dislodge it.
B)  Some monopolists have control over an essential resource.
C)  Several competing firms can provide cheaper service than a natural monopoly.
D)  As a firm grows larger,at first it realizes economies of scale,but eventually diseconomies of scale set in.

Question 18

A monopolist may make a profit

Accepted Answer

A)  only in the short run.
B)  only in the long run.
C)  in both the short and long run.
D)  in neither the short nor long run.

Question 19

Which statement is true about Wal-Mart?

Accepted Answer

A)  It pays most of its employees very well.
B)  It has forced many supermarkets out of business.
C)  Unlike its competitors,it charges its suppliers for shelf space.
D)  It is the third largest retailer in the U.S.

Question 20

Which statement is true?

Accepted Answer

A)  All monopolies are very large firms.
B)  Most monopolists do not produce at an output in which MC = MR.
C)  The monopolist's demand curve and MR curve are identical.
D)  None of these statements are true.

Exam 22: Monopoly

Which statement is true?

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Which statement is false?

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Output Price 1$302$273$244$215$18\begin{array} { c c } \text { Output } & \text { Price } \\\hline 1 & \$ 30 \\2 & \$ 27 \\3 & \$ 24 \\4 & \$ 21 \\5 & \$ 18\end{array} Output 12345​ Price $30$27$24$21$18​​ -The marginal revenue that would be derived from the production of the fifth unit is

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Statement I.Two ways to prevent public utilities from charging outrageous prices are (1) government regulation and (2) government ownership. Statement II.Large firms always behave badly.

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-If profit-maximizing,this firm will charge a price of

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Which statement is true about Wal-Mart?

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President Eisenhower warned us to "Beware of the __________."

Correct Answerverifiedmilitary-i...View AnswerShow Answer

All of the following at one time had control over an essential resource that served as a barrier to entry except

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When the Wrigley family owned the Chicago Cubs,the team was operating in the _________ run since,year in,year out,the team lost money.

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Output Price 1$20218316414512\begin{array} { c r } \text { Output } & \text { Price } \\1 & \$ 20 \\2 & 18 \\3 & 16 \\4 & 14 \\5 & 12\end{array} Output 12345​ Price $2018161412​ -If the marginal cost were $16,output would be

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-If the firm were operating at optimal efficiency it would have an output of

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A monopolist operates at the minimum point of its ATC curve

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Which statement is true?

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If the firm were a perfect competitor,how much would its price be in the long run?

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A monopolist may make a profit

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Which is the most accurate statement?

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Output Price 1$302$273$244$215$18\begin{array} { c c } \text { Output } & \text { Price } \\\hline 1 & \$ 30 \\2 & \$ 27 \\3 & \$ 24 \\4 & \$ 21 \\5 & \$ 18\end{array} Output 12345​ Price $30$27$24$21$18​​ -If the marginal cost were $18,output would be

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-The monopolist shown in the above graph

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Which is the most accurate statement?

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When total revenue is at a maximum

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$\begin{array} { c c } \text { Output } & \text { Price } \\\hline 1 & \$ 30 \\2 & \$ 27 \\3 & \$ 24 \\4 & \$ 21 \\5 & \$ 18\end{array}$ -The marginal revenue that would be derived from the production of the fifth unit is

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military-i...
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$\begin{array} { c r } \text { Output } & \text { Price } \\1 & \$ 20 \\2 & 18 \\3 & 16 \\4 & 14 \\5 & 12\end{array}$ -If the marginal cost were $16,output would be

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$\begin{array} { c c } \text { Output } & \text { Price } \\\hline 1 & \$ 30 \\2 & \$ 27 \\3 & \$ 24 \\4 & \$ 21 \\5 & \$ 18\end{array}$ -If the marginal cost were $18,output would be

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