Exam 8: Monopoly and Other Forms of Imperfect Competition

Suppose that quantity demanded is 2000 when price is $10 and 3000 when price is $5.If a monopolist who was initially charging a price of $10 discovers a way to divide consumers into two groups and charge one group a higher price,it will be able to increase revenue from $20,000 to

-Refer to the diagram above.At the profit-maximizing output level,consumer surplus is represented by the area

-Refer to the graph above.Compared to long-run equilibrium under perfect competition,a monopoly in this industry causes price to

Under exclusive contracting,the incentive to adopt cost-saving innovations is

Monopolistic competition is a market in which there are __________ firms that sell ___________ products,and there are ______ barriers to entry.

Cost-plus regulation of private natural monopolies means the monopolist can charge a price equal to

The most enduring source of market power is

-Refer to the diagram above and assume the case of cost-plus regulation.At equilibrium,with no subsidy,the firm's profit is

When the government seeks bids from private firms to provide a service like garbage collection,this is called

-Refer to the table above.The marginal revenue of selling the third unit is

The hurdle method of price discrimination is an attempt to

If the monopolist's demand curve is P = 50 - 10Q,then marginal revenue is zero when Q is equal to

Which of the following statements about perfect price discrimination is FALSE?

The common feature of pure monopoly,oligopoly,and monopolistic competition is

Given the total cost function,TC = 531 + 14Q,marginal cost is

A monopolist calculates her marginal revenue to be $15 and her marginal cost to be $16.One can infer that she

A monopolistically competitive firm is one

The problem of natural monopoly should be solved by

Given the total cost function,TC = 120 + 12Q,the average cost function is

An oligopolist is a firm that finds it is