Exam 8: Monopoly and Other Forms of Imperfect Competition

When a monopolist faces a U-shaped average cost curve in the short run as more and more output is produced,the upward-sloping portion of the curve is the result of

A major drawback to government ownership of natural monopolies is

Producing at the point where price equals marginal cost will always result in

-Refer to the diagram above.The deadweight loss resulting from the monopoly is represented by the area

The primary objective of a monopolist is to

If a monopolist were to discover that at his current output level,marginal revenue is $13 and marginal cost is $20,then he

When a consumer must take some sort of additional action to receive a lower price,the consumer is being subjected to

The profit-maximizing rule P = MC applies to

A market in which a single seller is required for technical efficiency in production is called a(n)

If a cost-plus regulated firm is allowed to count purchases of new personal computers in its rate base,but is not allowed to count computer hardware purchases to upgrade existing computers,one would expect to see the regulated firm

The reason a non-discriminating monopolist chooses to produce where P > MC rather than P = MC,and therefore causes a deadweight loss,is that he

The following diagram shows the demand curve,D,the marginal revenue curve,MR,and the marginal cost curve,MC,facing a monopolist. -Refer to the diagram above.At the profit-maximizing level of output,the monopolist collects total revenue equal to the area

-Refer to the diagram above.Presume that any cost that the cost-plus regulated monopolist incurs is included in the average total cost (shown as ATC)and that all the costs can be included in the price that this monopolist can charge.An increase in fixed costs,such as expensive leather chairs,would cause the

Perfect price discrimination is when

The economic advantage of a large firm over its smaller competitors arises primarily from

Compared to an unregulated firm,a cost-plus regulated firm has a smaller incentive to pursue cost-saving innovations because

Which of the following monopolists would likely face zero marginal cost?

If a monopolist's demand curve is P = 55 - 5Q,the marginal revenue of the fourth unit of output is

A firm that emerges as the only seller in an industry with economies of scale is called a(n)

A price taker __________ and a price setter __________.