Question 1

A monopoly market has

Accepted Answer

A)  a few firms.
B)  a single firm.
C)  two dominating firms in the market.
D)  only two firms in it.
E)  some unspecified number of firms in it.

Question 2

A single-price monopoly has marginal revenue and marginal cost equal to $19 at 15 units of output where the price on the demand curve is $38.What is the firm's total revenue?

Accepted Answer

A)  $38
B)  $285
C)  $570
D)  $19
E)  There is not enough information given to answer the question.

Question 3

With perfect price discrimination,a monopoly can extract the ________ price each customer is willing to pay and thereby obtain the entire ________ surplus.

Accepted Answer

A)  maximum;consumer
B)  minimum;producer
C)  maximum;producer
D)  minimum;consumer
E)  None of the above answers is correct.

Question 4

Which of the following is a characteristic of monopoly?

Accepted Answer

A)  The firm faces competition from many other firms.
B)  The firm produces a product that has many close substitutes.
C)  There are barriers to enter the market.
D)  The firm's demand is perfectly elastic.
E)  The firm produces a product identical to that produced by its many competitors.

Question 5

The assumption that regulation relentlessly seeks out deadweight loss and seeks to eliminate it is called the

Accepted Answer

A)  social interest theory of regulation.
B)  capture theory of regulation.
C)  Coase theory of regulation.
D)  socially optimal theory of regulation.
E)  predatory theory of regulation.

Question 6

Which produces more output: a perfectly price discriminating monopoly or a single-price monopoly?

Accepted Answer

The monopoly practicing perfec...

Question 7

-The above figure represents the cost and demand curves for a natural monopoly that is regulated using a marginal cost pricing rule.
a.What is the quantity?
b.What price is charged?
c.What area represents the consumer surplus when the firm is regulated using a marginal cost pricing rule?
d.What distance represents the firm's loss per unit when the firm is regulated using a marginal cost pricing rule?

Accepted Answer

a.The quantity is the efficient quantity...

Question 8

When a perfectly competitive industry is taken over by a monopoly,some consumer surplus is transferred to the monopolist in the form of

Accepted Answer

A)  marginal cost.
B)  economic profit.
C)  deadweight loss.
D)  taxes.
E)  average variable cost.

Question 9

Which of the following must a firm be able to do to successfully price discriminate?
I.divide buyers into different groups according to their willingness to pay
Ii.prevent resale of the good or service
Iii.identify into which group (high willingness to pay or low willingness to pay) a buyer falls

Accepted Answer

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

Question 10

In order for a hotel to successfully price discriminate so that senior citizens are given a discount,the hotel must be able to

Accepted Answer

A)  offset the economic loss from charging senior citizens a lower price by lowering the marginal cost of renting rooms to senior citizens.
B)  lower its prices to younger customers too.
C)  prevent senior citizens from reselling their rooms to younger customers.
D)  shift its demand curve rightward.
E)  determine if a senior citizen can pay a higher price.

Question 11

"A single-price monopoly charges a higher price and produces more output than a perfectly competitive industry." Is the previous statement correct or incorrect? Explain your answer.

Accepted Answer

The statement is partially correct becau...

Question 12

-The table above gives the demand for a monopolist's output.Between which two quantities is marginal revenue equal to 0?

Accepted Answer

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

Question 13

Arnie's Airlines decides to offer different fares to different customers for the same trip.Arnie's price discriminates because Arnie

Accepted Answer

A)  wants to convert consumer surplus to deadweight loss.
B)  wants to help some buyers with lower fares.
C)  has different costs for the same flight.
D)  wants to convert consumer surplus to economic profit.
E)  wants to convert producer surplus to consumer surplus.

Question 14

-The above figure represents the market for cable television in Oakland,Florida.Time Warner Communications (TWC) is the sole provider of cable television to the residents of this Central Florida community.If TWC operated under a marginal cost pricing rule,what is the price of cable television in Oakland?

Accepted Answer

A)  $40
B)  $30
C)  $20
D)  $10
E)  $0

Question 15

Compared to a perfectly competitive market,a single-price monopoly sets

Accepted Answer

A)  a lower price.
B)  the same price.
C)  a higher price.
D)  a price that might be higher,lower,or the same depending on whether the monopoly's marginal revenue curve lies above,below,or on its demand curve.
E)  a price that might be higher,lower,or the same depending on whether the monopoly's marginal cost curve lies above,below,or on its marginal revenue curve.

Question 16

Who receives benefits if regulation works according to social interest theory?

Accepted Answer

A)  the entire economy
B)  cohesive interest groups
C)  everyone not in the cohesive interest group
D)  the regulators
E)  It is impossible to determine who benefits.

Question 17

Comparing single-price monopoly to perfect competition,monopoly

Accepted Answer

A)  increases the amount of consumer surplus.
B)  has the same amount of consumer surplus.
C)  has no consumer surplus.
D)  decreases the amount of consumer surplus.
E)  decreases the amount of economic profit.

Question 18

The key idea behind price discrimination is to convert consumer surplus into

Accepted Answer

A)  a barrier to entry.
B)  economic profit.
C)  deadweight loss.
D)  monopoly power.
E)  total cost.

Question 19

-The figure above shows the demand,marginal revenue,and marginal cost curves for Paul's Parrot Pillows,a single-price monopoly producer of pillows stuffed with parrot feathers.When Paul maximizes his profit,he produces ________ pillows per hour.

Accepted Answer

A)  1,000
B)  3,000
C)  4,000
D)  0
E)  2,000

Question 20

-The table above gives the demand for a monopolist's output.What is the total revenue in when 3 units of output are produced?

Accepted Answer

A)  $21
B)  $20
C)  $18
D)  $6

Exam 12: Monopoly

"A single-price monopoly charges a higher price and produces more output than a perfectly competitive industry." Is the previous statement correct or incorrect? Explain your answer.

Correct Answer
verified
The statement is partially correct becau...
View Answer

A monopoly market has

Correct Answer
verified

-The figure above shows the demand,marginal revenue,and marginal cost curves for Paul's Parrot Pillows,a single-price monopoly producer of pillows stuffed with parrot feathers.When Paul maximizes his profit,he produces ________ pillows per hour.

Correct Answer
verified

Which of the following is a characteristic of monopoly?

Correct Answer
verified

-The table above gives the demand for a monopolist's output.Between which two quantities is marginal revenue equal to 0?

Correct Answer
verified

Correct Answer
verified
a.The quantity is the efficient quantity...
View Answer

Correct Answer
verified

Compared to a perfectly competitive market,a single-price monopoly sets

Correct Answer
verified

Comparing single-price monopoly to perfect competition,monopoly

Correct Answer
verified

A single-price monopoly has marginal revenue and marginal cost equal to $19 at 15 units of output where the price on the demand curve is $38.What is the firm's total revenue?

Correct Answer
verified

Arnie's Airlines decides to offer different fares to different customers for the same trip.Arnie's price discriminates because Arnie

Correct Answer
verified

Which produces more output: a perfectly price discriminating monopoly or a single-price monopoly?

Correct Answer
verified
The monopoly practicing perfec...
View Answer

The assumption that regulation relentlessly seeks out deadweight loss and seeks to eliminate it is called the

Correct Answer
verified

With perfect price discrimination,a monopoly can extract the price each customer is willing to pay and thereby obtain the entire surplus.

Correct Answer
verified

-The table above gives the demand for a monopolist's output.What is the total revenue in when 3 units of output are produced?

Correct Answer
verified

When a perfectly competitive industry is taken over by a monopoly,some consumer surplus is transferred to the monopolist in the form of

Correct Answer
verified

In order for a hotel to successfully price discriminate so that senior citizens are given a discount,the hotel must be able to

Correct Answer
verified

The key idea behind price discrimination is to convert consumer surplus into

Correct Answer
verified

Which of the following must a firm be able to do to successfully price discriminate? I.divide buyers into different groups according to their willingness to pay Ii.prevent resale of the good or service Iii.identify into which group (high willingness to pay or low willingness to pay) a buyer falls

Correct Answer
verified

Who receives benefits if regulation works according to social interest theory?

Correct Answer
verified

Exam 12: Monopoly

"A single-price monopoly charges a higher price and produces more output than a perfectly competitive industry." Is the previous statement correct or incorrect? Explain your answer.

Correct AnswerverifiedThe statement is partially correct becau...View AnswerShow Answer

A monopoly market has

Correct AnswerverifiedShow Answer

-The figure above shows the demand,marginal revenue,and marginal cost curves for Paul's Parrot Pillows,a single-price monopoly producer of pillows stuffed with parrot feathers.When Paul maximizes his profit,he produces ________ pillows per hour.

Correct AnswerverifiedShow Answer

Which of the following is a characteristic of monopoly?

Correct AnswerverifiedShow Answer

-The table above gives the demand for a monopolist's output.Between which two quantities is marginal revenue equal to 0?

Correct AnswerverifiedShow Answer

Correct Answerverifieda.The quantity is the efficient quantity...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Compared to a perfectly competitive market,a single-price monopoly sets

Correct AnswerverifiedShow Answer

Comparing single-price monopoly to perfect competition,monopoly

Correct AnswerverifiedShow Answer

A single-price monopoly has marginal revenue and marginal cost equal to $19 at 15 units of output where the price on the demand curve is $38.What is the firm's total revenue?

Correct AnswerverifiedShow Answer

Arnie's Airlines decides to offer different fares to different customers for the same trip.Arnie's price discriminates because Arnie

Correct AnswerverifiedShow Answer

Which produces more output: a perfectly price discriminating monopoly or a single-price monopoly?

Correct AnswerverifiedThe monopoly practicing perfec...View AnswerShow Answer

The assumption that regulation relentlessly seeks out deadweight loss and seeks to eliminate it is called the

Correct AnswerverifiedShow Answer

With perfect price discrimination,a monopoly can extract the ________ price each customer is willing to pay and thereby obtain the entire ________ surplus.

Correct AnswerverifiedShow Answer

-The table above gives the demand for a monopolist's output.What is the total revenue in when 3 units of output are produced?

Correct AnswerverifiedShow Answer

When a perfectly competitive industry is taken over by a monopoly,some consumer surplus is transferred to the monopolist in the form of

Correct AnswerverifiedShow Answer

In order for a hotel to successfully price discriminate so that senior citizens are given a discount,the hotel must be able to

Correct AnswerverifiedShow Answer

The key idea behind price discrimination is to convert consumer surplus into

Correct AnswerverifiedShow Answer

Which of the following must a firm be able to do to successfully price discriminate? I.divide buyers into different groups according to their willingness to pay Ii.prevent resale of the good or service Iii.identify into which group (high willingness to pay or low willingness to pay) a buyer falls

Correct AnswerverifiedShow Answer

Who receives benefits if regulation works according to social interest theory?

Correct AnswerverifiedShow Answer

Correct Answer
verified
The statement is partially correct becau...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified
a.The quantity is the efficient quantity...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The monopoly practicing perfec...
View Answer

Correct Answer
verified

With perfect price discrimination,a monopoly can extract the price each customer is willing to pay and thereby obtain the entire surplus.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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