Question 1

Anything that prevents new firms from competing on an equal basis with existing firms in an industry is called a barrier to entry.​

Accepted Answer

A) True 
 B)False

Question 2

The figure below shows the cost and revenue curves for a monopolist. The maximum profit earned by the non-discriminating monopolist is:​ ​
Figure 9.6
​

Accepted Answer

A)  $95,200.
B)  $84,000.
C)  $53,200.
D)  $42,000.
E)  $18,200.F) B) and E)
G) B) and D)

Question 3

A monopolist that engages in perfect price discrimination:​

Accepted Answer

A)  divides all buyers into two mutually exclusive groups.
B)  refuses to sell its output to consumers of rival brands.
C)  charges the same price for every unit sold.
D)  charges a different price for every unit sold.
E)  charges a high price to bulk consumers of its product.F) A) and B)
G) A) and C)

Question 4

Which of these is likely to be true of perfect competition but not of monopoly?​

Accepted Answer

A)  A firm can produce a good only if government licenses authorize it to produce the good.
B)  A firm can sell a good in the market only if the government grants a patent to the firm.
C)  A firm can earn economic profit in the long run.
D)  A firm can shut down in the short run only if the price charged by it exceeds the average variable cost of production.
E)  A firm can face competition from new entrants into the market in the long run.F) D) and E)
G) A) and D)

Question 5

The figure below shows the cost and revenue curves for a non-discriminating monopolist. The total cost incurred by the monopolist at the profit-maximizing output is _____.​ ​
Figure 9.1

Accepted Answer

A)  $3,300
B)  $3,400
C)  $2,808
D)  $2,340
E)  $1,638F) A) and D)
G) B) and E)

Question 6

The figure below shows the total cost and total revenue curves for a monopolist. The profit-maximizing price charged by the monopolist is:​ ​
Figure 9.3
​

Accepted Answer

A)  $70.
B)  $80.
C)  $23.33.
D)  $20.
E)  $40.F) None of the above
G) A) and B)

Question 7

Total deadweight loss in society is reduced through rent seeking by monopolists.​

Accepted Answer

A) True 
 B)False

Question 8

If a monopolist that does not practice price discrimination is operating at an output level where price equals average total cost, we can conclude that:​

Accepted Answer

A)  its economic profit is $0.
B)  it is not maximizing profit.
C)  it should go out of business in the long run.
D)  it is not earning a normal profit.
E)  it should shut down in the short run.F) A) and E)
G) A) and C)

Question 9

A major fruit juice manufacturer fails in its attempt to engage in price discrimination between students and all other consumers of fruit juice. Which of the following explanations is most likely to account for this failure?​

Accepted Answer

A)  The students resold the juice to other consumers.
B)  The market for fruit juice was monopolistically competitive.
C)  The price elasticity of demand for fruit juice was different for each group.
D)  The cost of producing the fruit juice was extremely high.
E)  The students preferred to purchase juice from other small juice manufacturers.F) A) and B)
G) A) and C)

Question 10

Barriers to entry:​

Accepted Answer

A)  cause monopolies to experience diseconomies of scale in the long run.
B)  prevent monopolies from earning profit in the short run.
C)  may allow monopolies to earn profit in the long run.
D)  prevent government from regulating a monopoly.
E)  prevent a natural monopoly from raising its price.F) None of the above
G) C) and E)

Question 11

For a monopolist producing a level of output at which market demand is inelastic, _____.​

Accepted Answer

A)  short-run profit is maximum.
B)  a decrease in price increases total revenue.
C)  a decrease in price decreases total cost.
D)  a decrease in price decreases total revenue.
E)  an increase in output increases short-run economic profit.F) A) and B)
G) B) and D)

Question 12

Perfectly competitive firms and monopolistic firms determine their respective profit-maximizing output levels where:​

Accepted Answer

A)  price equals marginal cost.
B)  total revenue is maximized.
C)  average total cost is minimized.
D)  marginal cost equals marginal revenue.
E)  price is at the maximum possible level.F) All of the above
G) D) and E)

Question 13

Which of the following describes a monopolized market structure?​

Accepted Answer

A)  A market structure with a single buyer
B)  Many firms with no control over price producing identical products with no differentiation
C)  A few firms with some control over price producing similar products which are close substitutes
D)  A few firms with no control over price producing highly differentiated products
E)  A single firm producing a highly differentiated product and serving the entire marketF) B) and E)
G) C) and D)

Question 14

The figure given below depicts a monopoly market in the absence of price discrimination. Consumer surplus in this market is represented by the area:​ ​
Figure 9.8
​

Accepted Answer

A)  eda.
B)  ecf.
C)  dacb.
D)  dafc.
E)  abf.F) B) and E)
G) A) and B)

Question 15

Suppose a single firm supplies all the ceramic windlasses in the U.S. The demand curve that the firm faces is:​

Accepted Answer

A)  elastic everywhere.
B)  unit elastic everywhere.
C)  inelastic only at the profit-maximizing output.
D)  perfectly inelastic everywhere.
E)  elastic only at the profit-maximizing output.F) A) and B)
G) B) and D)

Question 16

The figure below shows a non-discriminating monopolist. The total revenue earned by the monopolist at the profit-maximizing output is _____.​ ​
Figure 9.1

Accepted Answer

A)  $2,574
B)  $2,808
C)  $2,100
D)  $1,638
E)  $3,300F) A) and E)
G) A) and C)

Question 17

The figure below shows the cost and revenue curves for a monopolist. Assume that the marginal cost of production is equal to the average total cost at the profit maximizing output level. The maximum profit for this monopolist if he does not practice price discrimination is _____.​ ​
Figure 9.4
​

Accepted Answer

A)  $4
B)  $14
C)  $3.50
D)  $21
E)  $4.F) A) and B)
G) A) and C)

Question 18

Which of the following is most likely to be true of a monopoly in long-run equilibrium if it enjoys a patent and earns economic profit in the short run?​

Accepted Answer

A)  It will earn only a normal profit in the long run.
B)  It will suffer an economic loss and stop producing in the long run.
C)  It will earn a positive economic profit in the long run.
D)  It will achieve productive efficiency in the long run.
E)  It will achieve allocative efficiency in the long run.F) All of the above
G) B) and C)

Question 19

Which of the following is true for a monopolist?​

Accepted Answer

A)  Marginal revenue is maximized where demand is unit elastic.
B)  Total revenue is maximized where demand is inelastic.
C)  Marginal revenue is negative where demand is inelastic.
D)  Total revenue is negative where demand is elastic.
E)  Marginal revenue is lowest where demand is unit elastic.F) C) and D)
G) A) and B)

Question 20

The figure below shows the cost and revenue curves for a monopolist. The maximum profit earned by the non-discriminating monopolist is _____.​ ​
Figure 9.5
​

Accepted Answer

A)  $14
B)  −$8
C)  $0
D)  $46.62
E)  $54F) D) and E)
G) C) and D)

Exam 9: Monopoly

The figure below shows the cost and revenue curves for a monopolist. The maximum profit earned by the non-discriminating monopolist is _____.​ ​ Figure 9.5 ​

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The figure given below depicts a monopoly market in the absence of price discrimination. Consumer surplus in this market is represented by the area:​ ​ Figure 9.8 ​

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The figure below shows a non-discriminating monopolist. The total revenue earned by the monopolist at the profit-maximizing output is _____.​ ​ Figure 9.1

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Which of the following describes a monopolized market structure?​

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Which of the following is true for a monopolist?​

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The figure below shows the total cost and total revenue curves for a monopolist. The profit-maximizing price charged by the monopolist is:​ ​ Figure 9.3 ​

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Anything that prevents new firms from competing on an equal basis with existing firms in an industry is called a barrier to entry.​

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Which of the following is most likely to be true of a monopoly in long-run equilibrium if it enjoys a patent and earns economic profit in the short run?​

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Total deadweight loss in society is reduced through rent seeking by monopolists.​

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Which of these is likely to be true of perfect competition but not of monopoly?​

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The figure below shows the cost and revenue curves for a monopolist. The maximum profit earned by the non-discriminating monopolist is:​ ​ Figure 9.6 ​

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A monopolist that engages in perfect price discrimination:​

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Suppose a single firm supplies all the ceramic windlasses in the U.S. The demand curve that the firm faces is:​

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Perfectly competitive firms and monopolistic firms determine their respective profit-maximizing output levels where:​

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For a monopolist producing a level of output at which market demand is inelastic, _____.​

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Barriers to entry:​

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The figure below shows the cost and revenue curves for a non-discriminating monopolist. The total cost incurred by the monopolist at the profit-maximizing output is _____.​ ​ Figure 9.1

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If a monopolist that does not practice price discrimination is operating at an output level where price equals average total cost, we can conclude that:​

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A major fruit juice manufacturer fails in its attempt to engage in price discrimination between students and all other consumers of fruit juice. Which of the following explanations is most likely to account for this failure?​

Correct AnswerverifiedShow Answer

The figure below shows the cost and revenue curves for a monopolist. The maximum profit earned by the non-discriminating monopolist is _____. Figure 9.5

Correct Answer
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The figure given below depicts a monopoly market in the absence of price discrimination. Consumer surplus in this market is represented by the area: Figure 9.8

Correct Answer
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The figure below shows a non-discriminating monopolist. The total revenue earned by the monopolist at the profit-maximizing output is _____. Figure 9.1

Correct Answer
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Correct Answer
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Which of the following describes a monopolized market structure?

Correct Answer
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Which of the following is true for a monopolist?

Correct Answer
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The figure below shows the total cost and total revenue curves for a monopolist. The profit-maximizing price charged by the monopolist is: Figure 9.3

Correct Answer
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Anything that prevents new firms from competing on an equal basis with existing firms in an industry is called a barrier to entry.

Correct Answer
verified

Which of the following is most likely to be true of a monopoly in long-run equilibrium if it enjoys a patent and earns economic profit in the short run?

Correct Answer
verified

Total deadweight loss in society is reduced through rent seeking by monopolists.

Correct Answer
verified

Which of these is likely to be true of perfect competition but not of monopoly?

Correct Answer
verified

The figure below shows the cost and revenue curves for a monopolist. The maximum profit earned by the non-discriminating monopolist is: Figure 9.6

Correct Answer
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A monopolist that engages in perfect price discrimination:

Correct Answer
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Suppose a single firm supplies all the ceramic windlasses in the U.S. The demand curve that the firm faces is:

Correct Answer
verified

Perfectly competitive firms and monopolistic firms determine their respective profit-maximizing output levels where:

Correct Answer
verified

For a monopolist producing a level of output at which market demand is inelastic, _____.

Correct Answer
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Barriers to entry:

Correct Answer
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The figure below shows the cost and revenue curves for a non-discriminating monopolist. The total cost incurred by the monopolist at the profit-maximizing output is _____. Figure 9.1

Correct Answer
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If a monopolist that does not practice price discrimination is operating at an output level where price equals average total cost, we can conclude that:

Correct Answer
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A major fruit juice manufacturer fails in its attempt to engage in price discrimination between students and all other consumers of fruit juice. Which of the following explanations is most likely to account for this failure?

Correct Answer
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