Exam 12: Monopoly

Use the figure below to answer the following questions. Figure 12.5.2 -Consider the natural monopoly depicted in Figure 12.5.2.If a regulatory agency sets a price just sufficient for the firm to make zero economic profit,what output will it produce?

If marginal revenue equals zero,then demand at this level of output is

Use the figure below to answer the following questions. Figure 12.2.3 -Refer to Figure 12.2.3.Assume this firm is a single-price monopoly.How many tickets does this monopolist sell to maximize economic profit?

Canada Post has a monopoly on residential mail delivery.Pfizer Inc.makes Lipitor,a prescription drug that lowers cholesterol.Rogers Communications is the sole provider of cable television service in some parts of Ontario.The monopolies which profit from price discrimination are

Use the figure below to answer the following questions. Figure 12.3.3 -Consider Figure 12.3.3.In a single-price monopoly,which area indicates producer surplus?

An efficient use of resources occurs when

The pursuit of wealth by capturing economic rent

Use the figure below to answer the following question. Figure 12.4.1 -When perfect price discrimination occurs,which one of the following statements is false?

Consider the single-price monopoly illustrated in Figure 12.2.2.What is this monopoly's maximum economic profit?

Use the figure below to answer the following questions. Figure 12.3.3 -Consider Figure 12.3.3.Which area indicates the difference in producer surplus between a single-price monopoly and a perfectly competitive market?

Use the figure below to answer the following questions. Figure 12.3.2 -Consider Figure 12.3.2.The light grey area shows consumer surplus,and the dark grey area shows producer surplus.Which graph illustrates a single-price monopoly?

Suppose in an industry a firm realizes economies of scale over the entire length of its LRAC curve.In this situation,the firm is

The output of a (not perfect)price-discriminating monopoly is

A monopoly ________ make positive economic profit in the long run because ________.

For a regulated natural monopoly,an average cost pricing rule sets price equal to

Use the figure below to answer the following questions. Figure 12.3.3 -Consider Figure 12.3.3.Which area indicates the difference in consumer surplus between a single-price monopoly and a perfectly competitive market?

Use the figure below to answer the following questions. Figure 12.3.3 -Consider Figure 12.3.3.If this is a single-price monopoly,which area indicates consumer surplus?

A perfect price-discriminating monopoly produces

Use the figure below to answer the following questions. Figure 12.4.6 -Prime Pharmaceuticals has developed a new asthma inhaler,for which it has a patent.An inhaler can be produced at a constant marginal cost of $2 per inhaler.The demand curve,marginal revenue curve,and marginal cost curve for this new asthma inhaler are shown in Figure 12.4.6.The patent gives Prime Pharmaceuticals a monopoly for its new inhaler.If Prime Pharmaceuticals can perfectly price discriminate,deadweight loss is

Which of the following occurs with both perfectly price-discriminating and single-price monopolies?