Question 1

For a monopolist,when the price effect is greater than the output effect,marginal revenue is

Accepted Answer

A)   positive.
B)   negative.
C)   zero.
D)   maximized.

Question 2

What are the four ways that government policymakers can respond to the problem of monopoly?

Accepted Answer

First,the government can try to make mon...

Question 3

Like competitive firms,monopolies choose to produce a quantity in which marginal revenue equals marginal cost.

Accepted Answer

A) True 
 B)False

Question 4

Figure 15-4 
-Refer to Figure 15-4.A profit-maximizing monopoly will charge a price of

Accepted Answer

A)   P5.
B)   P4.
C)   P3.
D)   P2.

Question 5

Comparing firms in perfectly competitive markets to monopoly firms,which can earn economic profits in the long run?

Accepted Answer

The answer of Comparing firms in perfectly competitive markets to...

Question 6

A monopoly market

Accepted Answer

A)   always maximizes total economic well-being.
B)   always minimizes consumer surplus.
C)   generally fails to maximize total economic well-being.
D)   generally fails to maximize producer surplus.

Question 7

Table 15-7
Sally owns the only shoe store in town.She has the following cost and revenue information.
 
-Refer to Table 15-7.What is the total revenue from selling 8 pairs of shoes?

Accepted Answer

A)   $90
B)   $695
C)   $720
D)   $800

Question 8

Suppose when a monopolist produces 75 units its average revenue is $10 per unit,its marginal revenue is $5 per unit,its marginal cost is $6 per unit,and its average total cost is $5 per unit.What can we conclude about this monopolist?

Accepted Answer

A)   The monopolist is currently maximizing profits,and its total profits are $375.
B)   The monopolist is currently maximizing profits,and its total profits are $300.
C)   The monopolist is not currently maximizing profits;it should produce more units and charge a lower price to maximize profits.
D)   The monopolist is not currently maximizing profits;it should produce fewer units and charge a higher price to maximize profits.

Question 9

The laws governing patents and copyrights

Accepted Answer

A)   promote monopolies.
B)   are intended to serve private interests,not the public's interest.
C)   have costs but not benefits.
D)   eliminate the need for firms to engage in research and development.

Question 10

When a natural monopoly exists,it is

Accepted Answer

A)   always cost effective for government-owned firms to produce the product.
B)   never cost effective for one firm to produce the product.
C)   always cost effective for two or more private firms to produce the product.
D)   never cost effective for two or more private firms to produce the product.

Question 11

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 marginal revenue from selling the second unit of output is

Accepted Answer

A)   $8.
B)   $14.
C)   $16.
D)   $24.

Question 12

Patent and copyright laws encourage

Accepted Answer

A)   creative activity.
B)   research and development.
C)   competition among firms.
D)   Both a and b are correct.

Question 13

When a single firm can supply a product to an entire market at a lower cost than could two or more firms,the industry is called a

Accepted Answer

A)   resource industry.
B)   exclusive industry.
C)   government monopoly.
D)   natural monopoly.

Question 14

Figure 15-1 
-Refer to Figure 15-1.If a regulator requires the firm to charge an average cost price,what is the amount of proft or loss earned by the firm?

Accepted Answer

The answer of Figure 15-1 
-Refer to Figure 15-1.If a...

Question 15

A firm that is a natural monopoly

Accepted Answer

A)   is not likely to be concerned about new entrants eroding its monopoly power.
B)   is taking advantage of diseconomies of scale.
C)   would experience a lower average total cost if more firms entered the market.
D)   All of the above are correct.

Question 16

Figure 15-3 
-Refer to Figure 15-3.Profit can always be increased by increasing the level of output by one unit if the monopolist is currently operating at (i) 
Q0) 
(ii) 
Q1) 
(iii) 
Q2) 
(iv) 
Q3)

Accepted Answer

A)   (ii) only
B)   (i) or (ii) only
C)   (i) only
D)   (i) , (ii) ,or (iii) only

Question 17

Table 15-4
A monopolist faces the following demand curve:
 
-Refer to Table 15-4.In order to maximize total revenues,the monopolist should produce

Accepted Answer

A)   5 units.
B)   7.5 units.
C)   10 units.
D)   12.5 units.

Question 18

Consider a profit-maximizing monopoly pricing under the following conditions.The profit-maximizing quantity is 40 units,the profit-maximizing price is $160,and the marginal cost of the 40th unit is $120.If the good were produced in a perfectly competitive market,the equilibrium quantity would be 50,and the equilibrium price would be $150.The demand curve and marginal cost curves are linear.What is the value of the deadweight loss created by the monopolist?

Accepted Answer

A)   $40
B)   $100
C)   $200
D)   $400

Question 19

Some companies merge in order to lower costs through efficient joint production.

Accepted Answer

A) True 
 B)False

Question 20

When the government creates a monopoly,the social loss may include

Accepted Answer

A)   declining marginal costs.
B)   the cost of lawyers and lobbyists hired to convince lawmakers to continue the monopoly.
C)   excessive monopoly profits.
D)   diminishing marginal revenue.

Exam 15: Monopoly

What are the four ways that government policymakers can respond to the problem of monopoly?

Correct Answer
verified
First,the government can try to make mon...
View Answer

Figure 15-3 -Refer to Figure 15-3.Profit can always be increased by increasing the level of output by one unit if the monopolist is currently operating at (i) Q0) (ii) Q1) (iii) Q2) (iv) Q3)

Correct Answer
verified

Correct Answer
verified

Patent and copyright laws encourage

Correct Answer
verified

When a single firm can supply a product to an entire market at a lower cost than could two or more firms,the industry is called a

Correct Answer
verified

The laws governing patents and copyrights

Correct Answer
verified

Figure 15-1 -Refer to Figure 15-1.If a regulator requires the firm to charge an average cost price,what is the amount of proft or loss earned by the firm?

Correct Answer
verified

Table 15-7 Sally owns the only shoe store in town.She has the following cost and revenue information. -Refer to Table 15-7.What is the total revenue from selling 8 pairs of shoes?

Correct Answer
verified

For a monopolist,when the price effect is greater than the output effect,marginal revenue is

Correct Answer
verified

Suppose when a monopolist produces 75 units its average revenue is $10 per unit,its marginal revenue is $5 per unit,its marginal cost is $6 per unit,and its average total cost is $5 per unit.What can we conclude about this monopolist?

Correct Answer
verified

Like competitive firms,monopolies choose to produce a quantity in which marginal revenue equals marginal cost.

Correct Answer
verified

Figure 15-4 -Refer to Figure 15-4.A profit-maximizing monopoly will charge a price of

Correct Answer
verified

When the government creates a monopoly,the social loss may include

Correct Answer
verified

Table 15-4 A monopolist faces the following demand curve: -Refer to Table 15-4.In order to maximize total revenues,the monopolist should produce

Correct Answer
verified

A monopoly market

Correct Answer
verified

Some companies merge in order to lower costs through efficient joint production.

Correct Answer
verified

Comparing firms in perfectly competitive markets to monopoly firms,which can earn economic profits in the long run?

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 marginal revenue from selling the second unit of output is

Correct Answer
verified

When a natural monopoly exists,it is

Correct Answer
verified

A firm that is a natural monopoly

Correct Answer
verified

Exam 15: Monopoly

What are the four ways that government policymakers can respond to the problem of monopoly?

Correct AnswerverifiedFirst,the government can try to make mon...View AnswerShow Answer

Figure 15-3 -Refer to Figure 15-3.Profit can always be increased by increasing the level of output by one unit if the monopolist is currently operating at (i) Q0) (ii) Q1) (iii) Q2) (iv) Q3)

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Patent and copyright laws encourage

Correct AnswerverifiedShow Answer

When a single firm can supply a product to an entire market at a lower cost than could two or more firms,the industry is called a

Correct AnswerverifiedShow Answer

The laws governing patents and copyrights

Correct AnswerverifiedShow Answer

Figure 15-1 -Refer to Figure 15-1.If a regulator requires the firm to charge an average cost price,what is the amount of proft or loss earned by the firm?

Correct AnswerverifiedShow Answer

Table 15-7 Sally owns the only shoe store in town.She has the following cost and revenue information. -Refer to Table 15-7.What is the total revenue from selling 8 pairs of shoes?

Correct AnswerverifiedShow Answer

For a monopolist,when the price effect is greater than the output effect,marginal revenue is

Correct AnswerverifiedShow Answer

Suppose when a monopolist produces 75 units its average revenue is $10 per unit,its marginal revenue is $5 per unit,its marginal cost is $6 per unit,and its average total cost is $5 per unit.What can we conclude about this monopolist?

Correct AnswerverifiedShow Answer

Like competitive firms,monopolies choose to produce a quantity in which marginal revenue equals marginal cost.

Correct AnswerverifiedShow Answer

Figure 15-4 -Refer to Figure 15-4.A profit-maximizing monopoly will charge a price of

Correct AnswerverifiedShow Answer

When the government creates a monopoly,the social loss may include

Correct AnswerverifiedShow Answer

Table 15-4 A monopolist faces the following demand curve: -Refer to Table 15-4.In order to maximize total revenues,the monopolist should produce

Correct AnswerverifiedShow Answer

A monopoly market

Correct AnswerverifiedShow Answer

Some companies merge in order to lower costs through efficient joint production.

Correct AnswerverifiedShow Answer

Comparing firms in perfectly competitive markets to monopoly firms,which can earn economic profits in the long run?

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 marginal revenue from selling the second unit of output is

Correct AnswerverifiedShow Answer

When a natural monopoly exists,it is

Correct AnswerverifiedShow Answer

A firm that is a natural monopoly

Correct AnswerverifiedShow Answer

Correct Answer
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First,the government can try to make mon...
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