Question 1

Exhibit 9-20   In Exhibit 9-20, a non-discriminating monopolist will charge what price?

Accepted Answer

A) P1 
B) P2 
C) P3 
D) either P1 or P2 
E) unable to tell from the information given 
A) P1 
B) P2 
C) P3 
D) either P1 or P2 
E) unable to tell from the information given C

Question 2

Exhibit 9-21   In Exhibit 9-21, D = AR represents the market demand curve for bicycles, MRm represents the marginal revenue curve for a monopolist producer of bicycles and Sc = MC = AC represents the marginal cost curve for a monopolist producer of bicycles and the market supply curve when the market is perfectly competitive.The consumer surplus in a monopolist market would be

Accepted Answer

A) $10 
B) $20 
C) $30 
D) $40 
E) $50 
A) $10 
B) $20 
C) $30 
D) $40 
E) $50 A

Question 3

Exhibit 9-21   In Exhibit 9-21, D = AR represents the market demand curve for bicycles, MRm represents the marginal revenue curve for a monopolist producer of bicycles and Sc = MC = AC represents the marginal cost curve for a monopolist producer of bicycles and the market supply curve when the market is perfectly competitive.The output in a competitive industry would be

Accepted Answer

A) 2 bicycles 
B) 3 bicycles 
C) 4 bicycles 
D) 5 bicycles 
E) 6 bicycles 
A) 2 bicycles 
B) 3 bicycles 
C) 4 bicycles 
D) 5 bicycles 
E) 6 bicycles C

Question 4

Which of the following is not an example of De Beers trying to increase consumer demand?

Accepted Answer

A) sending the marketing message that a diamond last forever and so should love 
B) ads that illustrate that a diamond should remain in the family and not be sold 
C) informing potential customers about how diamonds lose monetary value over time 
D) introducing the idea of the diamond engagement ring 
E) the "spirit ring" as a sign of independence 
A) sending the marketing message that a diamond last forever and so should love 
B) ads that illustrate that a diamond should remain in the family and not be sold 
C) informing potential customers about how diamonds lose monetary value over time 
D) introducing the idea of the diamond engagement ring 
E) the "spirit ring" as a sign of independence

Question 5

Exhibit 9-21   In Exhibit 9-21, D = AR represents the market demand curve for bicycles, MRm represents the marginal revenue curve for a monopolist producer of bicycles and Sc = MC = AC represents the marginal cost curve for a monopolist producer of bicycles and the market supply curve when the market is perfectly competitive.The market price in a competitive market would be

Accepted Answer

A) $10 
B) $15 
C) $20 
D) $25 
E) $30 
A) $10 
B) $15 
C) $20 
D) $25 
E) $30

Question 6

Adam Matsumi is an attorney who can charge legal fees above the competitive level because entry of new competitors is made more difficult by the need to hold a(n)

Accepted Answer

A) state license 
B) patent 
C) essential resource 
D) economy of scale 
E) copyright 
A) state license 
B) patent 
C) essential resource 
D) economy of scale 
E) copyright

Question 7

Exhibit 9-21   In Exhibit 9-21, D = AR represents the market demand curve for bicycles, MRm represents the marginal revenue curve for a monopolist producer of bicycles and Sc = MC = AC represents the marginal cost curve for a monopolist producer of bicycles and the market supply curve when the market is perfectly competitive.The output for a monopolist would be

Accepted Answer

A) 2 bicycles 
B) 3 bicycles 
C) 4 bicycles 
D) 5 bicycles 
E) 6 bicycles 
A) 2 bicycles 
B) 3 bicycles 
C) 4 bicycles 
D) 5 bicycles 
E) 6 bicycles

Question 8

Because some monopolies could still earn an economic profit even if the firm is inefficient, corporate executives might waste resources by indulging in

Accepted Answer

A) long lunches 
B) corporate jets 
C) plush offices 
D) None of the answers is correct. 
E) All of the answers are correct. 
A) long lunches 
B) corporate jets 
C) plush offices 
D) None of the answers is correct. 
E) All of the answers are correct.

Question 9

Which of the following is not an example of price discrimination?

Accepted Answer

A) IBM charges business users of its laser printer more than home users 
B) Intel offered faster and slower versions of a computer chip 
C) An amusement park charges the same admission fee to local residents and out-of-towners 
D) Adobe stripped some features from Photoshop to offer a cheaper version 
E) Holders of Nevada driver's licenses pay less to ride the Las Vegas monorail 
A) IBM charges business users of its laser printer more than home users 
B) Intel offered faster and slower versions of a computer chip 
C) An amusement park charges the same admission fee to local residents and out-of-towners 
D) Adobe stripped some features from Photoshop to offer a cheaper version 
E) Holders of Nevada driver's licenses pay less to ride the Las Vegas monorail

Question 10

Consumer concern about "blood diamonds" or "conflict diamonds" may have caused a drop in De Beers sales.

Accepted Answer

A) True 
 B)False

Question 11

Business-class airline tickets cost much more than coach-class tickets because, compared to householders, businesspeople's demand for travel is

Accepted Answer

A) equally elastic 
B) unitary elastic 
C) more elastic 
D) less elastic 
E) not a factor in the cost of airline tickets 
A) equally elastic 
B) unitary elastic 
C) more elastic 
D) less elastic 
E) not a factor in the cost of airline tickets

Question 12

Exhibit 9-21   In Exhibit 9-21, D = AR represents the market demand curve for bicycles, MRm represents the marginal revenue curve for a monopolist producer of bicycles and Sc = MC = AC represents the marginal cost curve for a monopolist producer of bicycles and the market supply curve when the market is perfectly competitive.The consumer surplus in a competitive market would be

Accepted Answer

A) $10 
B) $20 
C) $30 
D) $40 
E) $50 
A) $10 
B) $20 
C) $30 
D) $40 
E) $50

Question 13

Exhibit 9-20   In Exhibit 9-20, a price discriminating monopolist will charge what price?

Accepted Answer

A) P1 in segments A and B 
B) P2 in segments A and B 
C) P3 in segments A and B 
D) P1 in segment A and P2 in segment B 
E) unable to be determined 
A) P1 in segments A and B 
B) P2 in segments A and B 
C) P3 in segments A and B 
D) P1 in segment A and P2 in segment B 
E) unable to be determined

Question 14

Exhibit 9-21   In Exhibit 9-21, D = AR represents the market demand curve for bicycles, MRm represents the marginal revenue curve for a monopolist producer of bicycles and Sc = MC = AC represents the marginal cost curve for a monopolist producer of bicycles and the market supply curve when the market is perfectly competitive.The deadweight loss due to monopoly would be

Accepted Answer

A) $10 
B) $20 
C) $30 
D) $40 
E) $50 
A) $10 
B) $20 
C) $30 
D) $40 
E) $50

Question 15

Exhibit 9-21   In Exhibit 9-21, D = AR represents the market demand curve for bicycles, MRm represents the marginal revenue curve for a monopolist producer of bicycles and Sc = MC = AC represents the marginal cost curve for a monopolist producer of bicycles and the market supply curve when the market is perfectly competitive.The market price in a monopolist market would

Accepted Answer

A) $10 
B) $15 
C) $20 
D) $25 
E) $30 
A) $10 
B) $15 
C) $20 
D) $25 
E) $30

Question 16

Exhibit 9-20   In Exhibit 9-20, how does market segment A differ from market segment B?

Accepted Answer

A) demand is relatively more elastic in segment A than in segment B 
B) demand is relatively more income elastic in segment A than in segment B 
C) demand is relatively more income elastic in segment B than in segment A 
D) there are more consumers in segment A than in segment B 
E) demand is relatively more inelastic in segment A than in segment B 
A) demand is relatively more elastic in segment A than in segment B 
B) demand is relatively more income elastic in segment A than in segment B 
C) demand is relatively more income elastic in segment B than in segment A 
D) there are more consumers in segment A than in segment B 
E) demand is relatively more inelastic in segment A than in segment B

Question 17

Cell phone companies offer pricing plan alternatives in order to convert some

Accepted Answer

A) consumer surplus into profit 
B) producer surplus into profit 
C) economic profit into normal profit 
D) profit into consumer surplus 
E) consumer surplus into deadweight loss 
A) consumer surplus into profit 
B) producer surplus into profit 
C) economic profit into normal profit 
D) profit into consumer surplus 
E) consumer surplus into deadweight loss

Question 18

Which of the following is an example of a local monopoly?

Accepted Answer

A) a restaurant at a rural crossroads 
B) Alcoa during the 19th century 
C) De Beers Consolidated Mines 
D) AT&T 
E) U.S.Postal Service 
A) a restaurant at a rural crossroads 
B) Alcoa during the 19th century 
C) De Beers Consolidated Mines 
D) AT&T 
E) U.S.Postal Service

Exhibit 9-20 In Exhibit 9-20, a non-discriminating monopolist will charge what price?

Which of the following is not an example of De Beers trying to increase consumer demand?

Adam Matsumi is an attorney who can charge legal fees above the competitive level because entry of new competitors is made more difficult by the need to hold a(n)

Because some monopolies could still earn an economic profit even if the firm is inefficient, corporate executives might waste resources by indulging in

Which of the following is not an example of price discrimination?

Consumer concern about "blood diamonds" or "conflict diamonds" may have caused a drop in De Beers sales.

Business-class airline tickets cost much more than coach-class tickets because, compared to householders, businesspeople's demand for travel is

Exhibit 9-20 In Exhibit 9-20, a price discriminating monopolist will charge what price?

Exhibit 9-20 In Exhibit 9-20, how does market segment A differ from market segment B?

Cell phone companies offer pricing plan alternatives in order to convert some

Which of the following is an example of a local monopoly?

The Art and Science of Economic Analysis

Appendix--Understanding Graphs

Economic Tools and Economics Systems

Economic Decision Makers

Demand, Supply, and Markets

Elasticity of Demand and Supply

Appendix--Price Elasticity and Tax Incidence

Consumer Choice and Demand

Appendix--Indifference Curves and Utility Maximization

Production and Cost in the Firm

A--Perfect Competition

B--Perfect Competition

A--Monopoly

Monopolistic Competition and Oligopoly

Resource Markets

Labor Markets and Labor Unions

Capital, Interest, and Corporate Finance

Transaction Costs, Imperfect Information, and Behavioral Economics

Economic Regulation and Antitrust Policy

Public Goods and Public Choice

Externalities and the Environment

Income Distribution and Poverty

International Trade

International Finance

Economic Development

Filters

Exam 9: B--Monopoly

Exhibit 9-20 In Exhibit 9-20, a non-discriminating monopolist will charge what price?

Which of the following is not an example of De Beers trying to increase consumer demand?

Adam Matsumi is an attorney who can charge legal fees above the competitive level because entry of new competitors is made more difficult by the need to hold a(n)

Because some monopolies could still earn an economic profit even if the firm is inefficient, corporate executives might waste resources by indulging in

Which of the following is not an example of price discrimination?

Consumer concern about "blood diamonds" or "conflict diamonds" may have caused a drop in De Beers sales.

Business-class airline tickets cost much more than coach-class tickets because, compared to householders, businesspeople's demand for travel is

Exhibit 9-20 In Exhibit 9-20, a price discriminating monopolist will charge what price?

Exhibit 9-20 In Exhibit 9-20, how does market segment A differ from market segment B?

Cell phone companies offer pricing plan alternatives in order to convert some

Which of the following is an example of a local monopoly?

The Art and Science of Economic Analysis

Appendix--Understanding Graphs

Economic Tools and Economics Systems

Economic Decision Makers

Demand, Supply, and Markets

Elasticity of Demand and Supply

Appendix--Price Elasticity and Tax Incidence

Consumer Choice and Demand

Appendix--Indifference Curves and Utility Maximization

Production and Cost in the Firm

A--Perfect Competition

B--Perfect Competition

A--Monopoly

Monopolistic Competition and Oligopoly

Resource Markets

Labor Markets and Labor Unions

Capital, Interest, and Corporate Finance

Transaction Costs, Imperfect Information, and Behavioral Economics

Economic Regulation and Antitrust Policy

Public Goods and Public Choice

Externalities and the Environment

Income Distribution and Poverty

International Trade

International Finance

Economic Development

Filters