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-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? A) $18 B) $4 C) $3 D) -$2 -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?


A) $18
B) $4
C) $3
D) -$2

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A monopoly creates a deadweight loss because the monopoly


A) sets a price that is too low.
B) makes a normal profit.
C) does not maximize profit.
D) produces less than the efficient quantity.
E) produces more than the efficient quantity.

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Why do publishers print the first edition of a book by a popular author in hard cover and not in paperback?


A) Hard cover books are long lasting and paperbacks can rip easily.
B) Readers who want to read the book as soon as it comes out will be willing to pay a higher price compared to those who can wait for the paperback edition.
C) A hardcover is the publishers' way of rewarding the avid readers.
D) Publishers are not sure of the demand.
E) Publishers cannot price discriminate.

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Compared to a single-price monopoly,when a monopoly can perfectly price discriminate,the deadweight loss


A) increases.
B) decreases.
C) remains the same.
D) becomes infinite.
E) probably changes, but more information is needed to determine if it increases, decreases, or remains constant.

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________ natural monopolies is a commonly used,potential solution to the problems presented by natural monopolies.


A) Breaking up firms that are
B) Regulating
C) Outlawing price discrimination by
D) Refusing to grant patents to
E) Giving incentives to firms to become

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The theory that regulation helps producers to maximize profit is the


A) social interest theory.
B) consumer surplus theory.
C) antitrust theory.
D) capture theory.
E) oligopoly theory of regulatory bodies.

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To be able to price discriminate,a firm must


A) lower prices for all customers.
B) raise prices for all customers.
C) be able to identify and separate different types of buyers.
D) sell a product that can be resold.
E) Both answers B and C are correct.

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-Suppose the grocery store market in Kansas City is perfectly competitive.Then one store buys all the others and becomes a single-price monopoly.The figure above shows the relevant demand and cost curves.When the market is a monopoly,the price of a pound of steak is A) $4. B) $8. C) $12. D) $20. E) $2. -Suppose the grocery store market in Kansas City is perfectly competitive.Then one store buys all the others and becomes a single-price monopoly.The figure above shows the relevant demand and cost curves.When the market is a monopoly,the price of a pound of steak is


A) $4.
B) $8.
C) $12.
D) $20.
E) $2.

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A monopoly


A) is not protected by barriers to entry.
B) produces a good with no close substitutes.
C) faces a downward-sloping demand curve.
D) Both answers A and B are correct.
E) Both answers B and C are correct.

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-Suppose the grocery store market in Kansas City is perfectly competitive.Then one store buys all the others and becomes a single-price monopoly.The figure above shows the relevant demand and cost curves.When the market is perfectly competitive,the quantity of steak is ________ pounds and when the market is a monopoly the quantity of steak is ________ pounds. A) 2,000; 4,000 B) 3,000; 2,000 C) 4,000; 4,000 D) 5,000; 3,000 E) 4,000; less than 2,000 pounds. -Suppose the grocery store market in Kansas City is perfectly competitive.Then one store buys all the others and becomes a single-price monopoly.The figure above shows the relevant demand and cost curves.When the market is perfectly competitive,the quantity of steak is ________ pounds and when the market is a monopoly the quantity of steak is ________ pounds.


A) 2,000; 4,000
B) 3,000; 2,000
C) 4,000; 4,000
D) 5,000; 3,000
E) 4,000; less than 2,000 pounds.

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Which creates a larger deadweight loss,perfect competition or a single-price monopoly?

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The single-price monopoly crea...

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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?


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

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When a natural monopoly is regulated using a marginal cost pricing rule,what can you say about the firm's profit and the market's efficiency?

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Using a marginal cost pricing ...

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-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 is left unregulated,how many households in Oakland are served? A) 20,000 B) 30,000 C) 40,000 D) 50,000 E) 10,000 -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 is left unregulated,how many households in Oakland are served?


A) 20,000
B) 30,000
C) 40,000
D) 50,000
E) 10,000

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The figure above shows a natural monopoly. -In the figure above,if the firm is regulated using a marginal cost pricing rule,the consumer surplus created is equal to the area of A) ABG. B) ACF. C) BCFG. D) BCE. E) None of the above because there is no consumer surplus created. The figure above shows a natural monopoly. -In the figure above,if the firm is regulated using a marginal cost pricing rule,the consumer surplus created is equal to the area of


A) ABG.
B) ACF.
C) BCFG.
D) BCE.
E) None of the above because there is no consumer surplus created.

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What is the relationship between the marginal revenue curve and the demand curve for a single-price monopoly?

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For a single-price monopoly,pr...

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Monopolies ________ fair and ________ efficient.


A) are always; are not
B) might be; are always
C) might be; might be
D) are always; are always
E) are never; are always

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One of the tendencies that is common among firms regulated using rate of return regulation is to


A) increase production to an inefficient level.
B) inflate the costs of production.
C) incur an economic loss.
D) understate the costs of production.
E) overstate their total revenue.

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Which of the following must exist for a firm to engage in price discrimination?


A) The firm must be able to identify and separate its buyers into different classes, and the low-price buyers cannot resell the product to the high-price buyers.
B) The firm must face an inelastic demand.
C) The firm must be able to realize economies of scale.
D) The firm must have no more than one class of buyer.
E) The firm must be a natural monopoly.

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If a natural monopoly is regulated using


A) a marginal cost pricing rule, the firm maximizes its profit.
B) an average cost pricing rule, the firm incurs an economic loss.
C) a total cost pricing rule, the firm will exit the industry.
D) a marginal cost pricing rule, the firm incurs an economic loss.
E) an average cost pricing rule, the firm maximizes its profit.

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