Exam 8: Monopoly and Other Forms of Imperfect Competition

In this diagram,D* represents the demand curve facing a monopolist and d** represents the demand curve facing a perfectly competitive firm. -Refer to the diagram above.If both the perfectly competitive firm and the monopolist expand production from Q1 to Q2,their respective total revenues are represented by the areas __________ and __________.

If a monopolist knows that at his current output level,marginal revenue is $8 and marginal cost is $8,then he

-Refer to the diagram above.Assume that the regulator sets price where price equals marginal cost.Then,the government must be prepared to

If the monopolist's demand curve is P = 90 - 3Q,then the price at which marginal revenue is equal to zero is

A reduced incentive to adopt cost-saving innovations is a concern

The monopolist's profit-maximizing price is $25 per unit and his marginal cost is $13.Consumers exist with reservation prices between $24 and $13 per unit.The monopolist is

A perfect hurdle is one that

If a firm is the sole supplier of a good for which there are no close substitutes,and barriers to entry into the industry exist,it must be that

A monopolistically competitive firm is in long-run equilibrium.It is selling 10 units of output at a price of $5 per unit.It can be inferred that,at this level of output,

-Refer to the diagram above.Assume that the regulator sets the market price and level of output that are consistent with the maximum total economic surplus.This can only be done if

If the monopolist's demand curve is P = 30 - 5Q,then her marginal revenue curve is

-Refer to the diagram above.Assume that the ATC curve includes a normal rate of return.Then cost-plus regulation results in a level of output of __________ units and a price of __________.

-Refer to the table above.The exact value of the deadweight loss due to monopoly is

When a perfect competitor sells additional units,

A price setter finds that it has

-Refer to the diagram above.The level of output that maximizes total economic surplus is __________ units with a price of __________.

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

If a monopolist finds that her marginal revenue exceeds her marginal cost at the current level of output,she should

A firm that exercises some control over the price it charges is termed a(n)

-Refer to the table above.At the point of profit maximization,a perfectly price-discriminating monopolist would collect total revenue of