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Exam 13: Monopoly

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Question 161

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What is a natural monopoly and what problem does natural monopoly pose for regulators?

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A natural monopoly is a firm that can su...

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Question 162

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The social interest theory of regulation assumes that

A) regulations favor voters over producers.
B) regulations promote the attainment of competitive output.
C) public officials seek to keep their jobs.
D) public officials favor consumers over producers.

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Question 163

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-If the firm in the figure above is unregulated, the deadweight loss will be

-Interlace, Inc. produces and a unique soda. The company cannot price discriminate. The figure above shows Interlace's demand curve, marginal revenue curve, and marginal cost curve. When Interlace maximizes its profit, the deadweight loss is

Joe, a hair dresser, offers students a discount price on haircuts. This form of pricing is an example of

-In the above figure, if a single-price monopolist charges the profit-maximizing price, the triangle dce represents

For a monopolist, on the inelastic range of its demand

-Given the market demand and cost data in the above figure, the existence of two firms equal sized firms producing a total of 8 million cubic feet of natural gas means that the long-run average cost of producing natural gas is

A price discriminating monopolist

Activity aimed at creating artificial barriers to entry into a particular market

In the case of a perfectly price-discriminating monopoly, there is no

Firms that can price discriminate between customers do so to

A market in which competition and entry are restricted by the granting of a public franchise, government license, patent, or copyright is called a

Which of the following is TRUE for a perfect price-discriminating monopoly?

Suppose a firm is a natural monopoly. Then, until the long-run average cost curve crosses the demand curve, as the quantity increases the long-run average costs

Which of the following cannot be an effective entry barrier?

-In the figure above, what is the loss of consumer surplus if the firm is a perfectly price-discriminating monopoly instead of a perfectly competitive industry?

-The table above shows the demand and costs for a single-price monopolist. The firm will

-The table above gives the demand for a monopolist's output. What is the marginal revenue when output is increased from 5 to 6 units?

-The figure above shows the demand curve (D) faced by Visual, Inc., a cable TV company, and the firm's marginal revenue (MR) , marginal cost (MC) , and average cost (LRAC) curves. If Visual is regulated using rate of return regulation, and the regulator knows the firm's costs curves, the company will serve ________ million households and set a price of ________ per household per month.