A) exceed the losses to consumers in monopoly markets, resulting in a net gain to society.
B) equal the losses to consumers in monopoly markets, resulting in no net change for society.
C) are less than the losses to consumers in monopoly markets, resulting in a net loss to society.
D) create smaller deadweight losses than occur in purely competitive industries.
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A) will never produce in the output range where marginal revenue is positive.
B) will never produce in the output range where demand is inelastic.
C) will never produce in the output range where demand is elastic.
D) may produce where demand is either elastic or inelastic, depending on the level of production costs.
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A) $20; $27.33
B) $10; $10.40
C) $24; $27.33
D) $30; $20.50
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A) Average revenue is less than price.
B) Its elasticity coefficient is 1 at all levels of output.
C) Price and marginal revenue are equal at all levels of output.
D) It is the same as the market demand curve.
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A) marginal revenue exceeds product price at all profitable levels of production.
B) monopolists always price their products on the basis of the ability of consumers to pay rather than on costs of production.
C) MC > P.
D) society values additional units of the monopolized product more highly than it does the alternative products those resources could otherwise produce.
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A) price is greater than marginal cost.
B) price is greater than average revenue.
C) average total cost equals marginal cost.
D) total revenue is greater than total cost.
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A) incurs a loss.
B) earns an economic profit of $250.
C) earns a normal profit of $250.
D) earns an economic profit of $150.
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A) marginal revenue is positive when total revenue is at a maximum.
B) total revenue is positive when marginal revenue is increasing, but total revenue becomes negative when marginal revenue is decreasing.
C) marginal revenue is positive when total revenue is increasing, but marginal revenue becomes negative when total revenue is decreasing.
D) marginal revenue is positive so long as total revenue is positive.
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A) The seller must have some monopoly power; that is, it must be able to set the product price.
B) The seller must be able to identify buyers by group characteristics such as age or income.
C) Groups must have different elasticities of demand for the product.
D) The items can be bought by people in the low-price group and transferred to members of the high-price group.
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A) applies only to pure competition.
B) applies only to pure monopoly.
C) does not apply to pure monopoly, because price exceeds marginal revenue.
D) applies both to pure monopoly and pure competition.
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A) A monopolist fails to expand output to the level where the consumers' valuation of an additional unit is just equal to its opportunity cost.
B) A monopolist has no incentive to produce efficiently, because even the inefficient monopolist can be assured of economic profits.
C) A monopolist will always earn profits, and that means that prices are too high.
D) A monopolist has an unfair advantage because it can purchase labor at a lower price than competitive firms can.
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A) $9.75.
B) $204.75.
C) $4.75.
D) $.25.
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A) there are barriers to entry in pure monopoly.
B) a monopoly has a perfectly elastic demand curve.
C) marginal revenue is less than average revenue.
D) total revenues are greater than total costs at the profit maximizing level of output.
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A) exceeds average revenue or price.
B) is identical to price.
C) is sometimes greater and sometimes less than price.
D) is less than average revenue or price.
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