Question 1

A monopolist is likely to produce _____ and charge _____ than is a comparable perfectly competitive firm.

Accepted Answer

A) more;more 
B) less;more 
C) more;less 
D) less;less 
A) more;more 
B) less;more 
C) more;less 
D) less;less B

Question 2

When a monopolist practices price discrimination,compared with a single-price monopolist,deadweight loss will:

Accepted Answer

A) remain the same. 
B) increase. 
C) decrease. 
D) increase initially and then return to its original level. 
A) remain the same. 
B) increase. 
C) decrease. 
D) increase initially and then return to its original level. C

Question 3

Most electric,gas,and water companies are examples of _____ monopolies.

Accepted Answer

A) unregulated 
B) natural 
C) restricted-input 
D) sunk-cost 
A) unregulated 
B) natural 
C) restricted-input 
D) sunk-cost B

Question 4

Price discrimination can never occur in oligopoly.

Accepted Answer

A) True 
 B)False

Question 5

For a monopolist with a downward-sloping demand curve,the quantity effect is MOST likely to dominate the price effect at:

Accepted Answer

A) low levels of production. 
B) all levels of production. 
C) high levels of production. 
D) levels at which elasticity is unit-elastic. 
A) low levels of production. 
B) all levels of production. 
C) high levels of production. 
D) levels at which elasticity is unit-elastic.

Question 6

Use the following to answer question:
Figure: The Profit-Maximizing Output and Price  
-(Figure: The Profit-Maximizing Output and Price)Use Figure: The Profit-Maximizing Output and Price.Under perfect competition,the price of the good would be _____ and _____ units would be produced.

Accepted Answer

A) $600;8 
B) $200;8 
C) $200;16 
D) $600;16 
A) $600;8 
B) $200;8 
C) $200;16 
D) $600;16

Question 7

Use the following to answer question:
Figure: Short-Run Monopoly  
-(Figure: Short-Run Monopoly)Use Figure: Short-Run Monopoly.The profit-maximizing rule is satisfied by the intersection at point:

Accepted Answer

A) G. 
B) H. 
C) J. 
D) L. 
A) G. 
B) H. 
C) J. 
D) L.

Question 8

Use the following to answer question:  
-(Table: Prices and Demand)Use Table: Prices and Demand.The New Orleans Saints have a monopoly on Saints logo hats.The marginal cost of producing a hat is $18.How much is producer surplus at the Saint's profit-maximizing output?

Accepted Answer

A) $24 
B) $18 
C) $12 
D) $9 
A) $24 
B) $18 
C) $12 
D) $9

Question 9

Marginal revenue for a monopolist is:

Accepted Answer

A) equal to price. 
B) greater than price. 
C) less than price. 
D) equal to average revenue. 
A) equal to price. 
B) greater than price. 
C) less than price. 
D) equal to average revenue.

Question 10

Use the following to answer question:  
-(Table: Lunch)Use Table: Lunch.This table shows market demand for picnic lunches for people taking all-day rafting trips on the river.Suppose that the marginal cost and average cost of each lunch are a constant $4 for all firms in the market.What is producer surplus in this market in the long run?

Accepted Answer

A) $0 
B) $4 
C) $180 
D) $360 
A) $0 
B) $4 
C) $180 
D) $360

Question 11

A producer is a monopoly if it is the sole supplier of a good that has no close substitutes.

Accepted Answer

A) True 
 B)False

Question 12

A monopoly is MOST likely to be temporary if the monopoly power is derived from:

Accepted Answer

A) high barriers to entry. 
B) a fundamental lack of substitutes for the monopolist's product. 
C) economies of scale. 
D) technological change. 
A) high barriers to entry. 
B) a fundamental lack of substitutes for the monopolist's product. 
C) economies of scale. 
D) technological change.

Question 13

An oligopoly that engages in price discrimination will charge higher prices to customers with the most inelastic demand.

Accepted Answer

A) True 
 B)False

Question 14

Suppose a monopoly is producing output so that marginal revenue equals marginal cost.If the monopolist reduces output,it:

Accepted Answer

A) can charge a higher price. 
B) will increase profits. 
C) will decrease marginal revenue. 
D) can't change the price because it is a price taker. 
A) can charge a higher price. 
B) will increase profits. 
C) will decrease marginal revenue. 
D) can't change the price because it is a price taker.

Question 15

In monopoly:

Accepted Answer

A) a basic condition for efficiency is violated because P > MC. 
B) consumers are confronted with a price that is lower than marginal cost. 
C) consumers will buy more of the good than is economically efficient. 
D) consumers are confronted with a price that is lower than average total cost. 
A) a basic condition for efficiency is violated because P > MC. 
B) consumers are confronted with a price that is lower than marginal cost. 
C) consumers will buy more of the good than is economically efficient. 
D) consumers are confronted with a price that is lower than average total cost.

Question 16

The government can reduce the inefficiency associated with a monopoly through a system of patents and copyrights.

Accepted Answer

A) True 
 B)False

Question 17

Use the following to answer question:  
-(Table: Prices and Demand)The New Orleans Saints have a monopoly on Saints logo hats.The marginal cost of producing a hat is $18.If the Saints increase the number of hats they sell from 4 to 5,the quantity effect is a(n)_____ in total revenue of _____.

Accepted Answer

A) decrease;$20 
B) increase;$20 
C) decrease;$8 
D) increase;$8 
A) decrease;$20 
B) increase;$20 
C) decrease;$8 
D) increase;$8

Question 18

Temporary monopolies via the provision of sole ownership rights to profit from the production,use,or sale of a good are provided by:

Accepted Answer

A) patents and copyrights. 
B) natural monopolies. 
C) profit-maximizing behavior. 
D) network externalities. 
A) patents and copyrights. 
B) natural monopolies. 
C) profit-maximizing behavior. 
D) network externalities.

Question 19

The demand curve facing a monopolist is:

Accepted Answer

A) vertical,the same as that facing a perfectly competitive firm. 
B) perfectly inelastic,the same as that facing a perfectly competitive firm. 
C) upward sloping,the same as that facing a perfectly competitive firm. 
D) downward sloping,like the industry demand curve in perfect competition. 
A) vertical,the same as that facing a perfectly competitive firm. 
B) perfectly inelastic,the same as that facing a perfectly competitive firm. 
C) upward sloping,the same as that facing a perfectly competitive firm. 
D) downward sloping,like the industry demand curve in perfect competition.

Question 20

Use the following to answer question:  
-(Table: Lunch)Use Table: Lunch.This table shows market demand for picnic lunches for people taking all-day rafting trips on the river.Joe has a firm providing this service,and his marginal cost and average cost for each lunch are a constant $4.If Joe is a monopolist,how many lunches will he produce in the long run?

Accepted Answer

A) 0 
B) 10 
C) 20 
D) 30 
A) 0 
B) 10 
C) 20 
D) 30

A monopolist is likely to produce _ and charge _ than is a comparable perfectly competitive firm.

When a monopolist practices price discrimination,compared with a single-price monopolist,deadweight loss will:

Most electric,gas,and water companies are examples of _____ monopolies.

Price discrimination can never occur in oligopoly.

For a monopolist with a downward-sloping demand curve,the quantity effect is MOST likely to dominate the price effect at:

Use the following to answer question: Figure: The Profit-Maximizing Output and Price -(Figure: The Profit-Maximizing Output and Price)Use Figure: The Profit-Maximizing Output and Price.Under perfect competition,the price of the good would be _ and _ units would be produced.

Use the following to answer question: Figure: Short-Run Monopoly -(Figure: Short-Run Monopoly)Use Figure: Short-Run Monopoly.The profit-maximizing rule is satisfied by the intersection at point:

Use the following to answer question: -(Table: Prices and Demand)Use Table: Prices and Demand.The New Orleans Saints have a monopoly on Saints logo hats.The marginal cost of producing a hat is $18.How much is producer surplus at the Saint's profit-maximizing output?

Marginal revenue for a monopolist is:

A producer is a monopoly if it is the sole supplier of a good that has no close substitutes.

A monopoly is MOST likely to be temporary if the monopoly power is derived from:

An oligopoly that engages in price discrimination will charge higher prices to customers with the most inelastic demand.

Suppose a monopoly is producing output so that marginal revenue equals marginal cost.If the monopolist reduces output,it:

In monopoly:

The government can reduce the inefficiency associated with a monopoly through a system of patents and copyrights.

Use the following to answer question: -(Table: Prices and Demand)The New Orleans Saints have a monopoly on Saints logo hats.The marginal cost of producing a hat is $18.If the Saints increase the number of hats they sell from 4 to 5,the quantity effect is a(n)_ in total revenue of _.

Temporary monopolies via the provision of sole ownership rights to profit from the production,use,or sale of a good are provided by:

The demand curve facing a monopolist is:

First Principles

Economic Models: Trade-Offs and Trade

Consumer and Producer Surplus

Supply and Demand

Price Controls and Quotas: Meddling With Markets

Elasticity

Taxes

International Trade

Decision Making by Individuals and Firms

The Rational Consumer

Behind the Supply Curve: Inputs and Costs

Perfect Competition and the Supply Curve

Oligopoly

Monopolistic Competition and Product Differentiation

Externalities

Public Goods and Common Resources

The Economics of the Welfare State

Factor Markets and the Distribution of Income

Uncertainty, Risk, and Private Information

Graphs in Economics

Consumer Preferences and Consumer Choice

Filters

Exam 13: Monopoly

A monopolist is likely to produce _____ and charge _____ than is a comparable perfectly competitive firm.

When a monopolist practices price discrimination,compared with a single-price monopolist,deadweight loss will:

Most electric,gas,and water companies are examples of _____ monopolies.

Price discrimination can never occur in oligopoly.

For a monopolist with a downward-sloping demand curve,the quantity effect is MOST likely to dominate the price effect at:

Use the following to answer question: Figure: The Profit-Maximizing Output and Price -(Figure: The Profit-Maximizing Output and Price)Use Figure: The Profit-Maximizing Output and Price.Under perfect competition,the price of the good would be _____ and _____ units would be produced.

Use the following to answer question: Figure: Short-Run Monopoly -(Figure: Short-Run Monopoly)Use Figure: Short-Run Monopoly.The profit-maximizing rule is satisfied by the intersection at point:

Use the following to answer question: -(Table: Prices and Demand)Use Table: Prices and Demand.The New Orleans Saints have a monopoly on Saints logo hats.The marginal cost of producing a hat is $18.How much is producer surplus at the Saint's profit-maximizing output?

Marginal revenue for a monopolist is:

A producer is a monopoly if it is the sole supplier of a good that has no close substitutes.

A monopoly is MOST likely to be temporary if the monopoly power is derived from:

An oligopoly that engages in price discrimination will charge higher prices to customers with the most inelastic demand.

Suppose a monopoly is producing output so that marginal revenue equals marginal cost.If the monopolist reduces output,it:

In monopoly:

The government can reduce the inefficiency associated with a monopoly through a system of patents and copyrights.

Use the following to answer question: -(Table: Prices and Demand)The New Orleans Saints have a monopoly on Saints logo hats.The marginal cost of producing a hat is $18.If the Saints increase the number of hats they sell from 4 to 5,the quantity effect is a(n)_____ in total revenue of _____.

Temporary monopolies via the provision of sole ownership rights to profit from the production,use,or sale of a good are provided by:

The demand curve facing a monopolist is:

First Principles

Economic Models: Trade-Offs and Trade

Consumer and Producer Surplus

Supply and Demand

Price Controls and Quotas: Meddling With Markets

Elasticity

Taxes

International Trade

Decision Making by Individuals and Firms

The Rational Consumer

Behind the Supply Curve: Inputs and Costs

Perfect Competition and the Supply Curve

Oligopoly

Monopolistic Competition and Product Differentiation

Externalities

Public Goods and Common Resources

The Economics of the Welfare State

Factor Markets and the Distribution of Income

Uncertainty, Risk, and Private Information

Graphs in Economics

Consumer Preferences and Consumer Choice

Filters

A monopolist is likely to produce _ and charge _ than is a comparable perfectly competitive firm.

Use the following to answer question: Figure: The Profit-Maximizing Output and Price -(Figure: The Profit-Maximizing Output and Price)Use Figure: The Profit-Maximizing Output and Price.Under perfect competition,the price of the good would be _ and _ units would be produced.

Use the following to answer question: -(Table: Prices and Demand)The New Orleans Saints have a monopoly on Saints logo hats.The marginal cost of producing a hat is $18.If the Saints increase the number of hats they sell from 4 to 5,the quantity effect is a(n)_ in total revenue of _.