Question 1

In Exhibit 9­18, how does market segment A differ from market segment B?

Accepted Answer

A) demand is relatively more elastic in segment A than in segment B 
B) demand is relatively more income elastic in segment A than in segment B 
C) demand is relatively more income elastic in segment B than in segment A 
D) there are more consumers in segment A than in segment B 
E) demand is relatively more inelastic in segment A than in segment B 
A) demand is relatively more elastic in segment A than in segment B 
B) demand is relatively more income elastic in segment A than in segment B 
C) demand is relatively more income elastic in segment B than in segment A 
D) there are more consumers in segment A than in segment B 
E) demand is relatively more inelastic in segment A than in segment B E

Question 2

Which of the following is an example of a local monopoly as compared to anational or international monopoly?

Accepted Answer

A) a restaurant at a rural crossroads 
B) Alcoa during the 19th century 
C) De Beers Consolidated Mines 
D) AT&T 
E) U.S.Postal Service 
A) a restaurant at a rural crossroads 
B) Alcoa during the 19th century 
C) De Beers Consolidated Mines 
D) AT&T 
E) U.S.Postal Service A

Question 3

Which of the following is not an example of De Beers Diamonds trying toincrease consumer demand?

Accepted Answer

A) sending the marketing message that a diamond lasts forever 
B) ads that illustrate that a diamond should remain in the family and not be sold 
C) informing potential customers about how diamonds lose monetary value over time 
D) introducing the idea of the diamond engagement ring 
E) the "spirit ring" as a sign of independence 
A) sending the marketing message that a diamond lasts forever 
B) ads that illustrate that a diamond should remain in the family and not be sold 
C) informing potential customers about how diamonds lose monetary value over time 
D) introducing the idea of the diamond engagement ring 
E) the "spirit ring" as a sign of independence C

Question 4

Business­class airline tickets cost much more than coach­class ticketsbecause, compared to householders, businesspeople's demand for travel is

Accepted Answer

A) equally elastic 
B) unitary elastic 
C) more elastic 
D) less elastic 
E) not a factor in the cost of airline tickets 
A) equally elastic 
B) unitary elastic 
C) more elastic 
D) less elastic 
E) not a factor in the cost of airline tickets

Question 5

After a corporate merger, Rebecca Jalamid became the CEO of a monopolyfirm.She was surprised to learn that one benefit of being a monopoly was thather company

Accepted Answer

A) could charge as high a price as desired 
B) was in a good position to capture the fruits of any innovation 
C) received increased scrutiny from government regulators 
D) started to attract potential competitors motivated to get a share of the economic profits of Rebecca's company 
E) contributed to the deadweight loss in the economy 
A) could charge as high a price as desired 
B) was in a good position to capture the fruits of any innovation 
C) received increased scrutiny from government regulators 
D) started to attract potential competitors motivated to get a share of the economic profits of Rebecca's company 
E) contributed to the deadweight loss in the economy

Question 6

In Exhibit 9­18, a price discriminating monopolist will charge what price?

Accepted Answer

A) P1 in segments A and B 
B) P2 in segments A and B 
C) P3 in segments A and B 
D) P1 in segment A and P2 in segment B 
E) unable to be determined 
A) P1 in segments A and B 
B) P2 in segments A and B 
C) P3 in segments A and B 
D) P1 in segment A and P2 in segment B 
E) unable to be determined

Question 7

Consumer concern about "blood diamonds," a diamond mined in a war zoneand sold to finance an insurgency, invading army's war efforts, or a warlord'sactivity, may have caused a drop in De Beers sales.

Accepted Answer

A) True 
 B)False

Question 8

Adam Matsumi is an attorney who can charge legal fees above thecompetitive level because entry of new competitors is made more difficult bythe need to hold a(n)

Accepted Answer

A) state license 
B) patent 
C) essential resource 
D) economy of scale 
E) copyright 
A) state license 
B) patent 
C) essential resource 
D) economy of scale 
E) copyright

Question 9

United States Postal Service has successfully leveraged its monopoly powerthrough

Accepted Answer

A) online postage purchases 
B) delivery of Netflix DVDs 
C) an online bill­paying service 
D) a secure online document transmission service 
E) increasing third­class mail rates 
A) online postage purchases 
B) delivery of Netflix DVDs 
C) an online bill­paying service 
D) a secure online document transmission service 
E) increasing third­class mail rates

Question 10

In Exhibit 9­18, a non­discriminating monopolist will charge what price?

Accepted Answer

A) P1 
B) P2 
C) P3 
D) either P1 or P2 
E) unable to tell from the information given 
A) P1 
B) P2 
C) P3 
D) either P1 or P2 
E) unable to tell from the information given

Question 11

Which of the following is not an example of price discrimination?

Accepted Answer

A) IBM charges business users of its laser printer more than home users 
B) Intel offered faster and slower versions of a computer chip 
C) An amusement park charges the same admission fee to local residents and out­of­towners 
D) Adobe stripped some features from Photoshop to offer a cheaper version 
E) Holders of Nevada driver's licenses pay less to ride the Las Vegas monorail 
A) IBM charges business users of its laser printer more than home users 
B) Intel offered faster and slower versions of a computer chip 
C) An amusement park charges the same admission fee to local residents and out­of­towners 
D) Adobe stripped some features from Photoshop to offer a cheaper version 
E) Holders of Nevada driver's licenses pay less to ride the Las Vegas monorail

Question 12

0Cell phone companies offer pricing plan alternatives in order to convert some

Accepted Answer

A) consumer surplus into profit 
B) producer surplus into profit 
C) economic profit into normal profit 
D) profit into consumer surplus 
E) consumer surplus into deadweight loss 
A) consumer surplus into profit 
B) producer surplus into profit 
C) economic profit into normal profit 
D) profit into consumer surplus 
E) consumer surplus into deadweight loss

In Exhibit 918, how does market segment A differ from market segment B?

Which of the following is an example of a local monopoly as compared to anational or international monopoly?

Which of the following is not an example of De Beers Diamonds trying toincrease consumer demand?

Businessclass airline tickets cost much more than coachclass ticketsbecause, compared to householders, businesspeople's demand for travel is

After a corporate merger, Rebecca Jalamid became the CEO of a monopolyfirm.She was surprised to learn that one benefit of being a monopoly was thather company

In Exhibit 918, a price discriminating monopolist will charge what price?

Consumer concern about "blood diamonds," a diamond mined in a war zoneand sold to finance an insurgency, invading army's war efforts, or a warlord'sactivity, may have caused a drop in De Beers sales.

Adam Matsumi is an attorney who can charge legal fees above thecompetitive level because entry of new competitors is made more difficult bythe need to hold a(n)

United States Postal Service has successfully leveraged its monopoly powerthrough

In Exhibit 918, a nondiscriminating monopolist will charge what price?

Which of the following is not an example of price discrimination?

0Cell phone companies offer pricing plan alternatives in order to convert some

The Art and Science of Economic Analysis

Economic Tools and Economics Systems

Economic Decision Makers

Demand Supply and Markets

Elasticity of Demand and Supply

Consumer Choice and Demand

Production and Cost in the Firm

Perfect Competition

Monopolistic Competition and Oligopoly

Resource Markets

Labor Markets and Labor Unions

Capital Interest Entrepreneurship and Corporate Finance

Transaction Costs Imperfect Information and Behavioral Economics

Economic Regulation and Antitrust Policy

Public Goods and Public Choice

Externalities and the Environment

Income Distribution and Poverty

International Trade

International Finance

Economic Development

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Exam 9: Monopoly

In Exhibit 9­18, how does market segment A differ from market segment B?

Which of the following is an example of a local monopoly as compared to anational or international monopoly?

Which of the following is not an example of De Beers Diamonds trying toincrease consumer demand?

Business­class airline tickets cost much more than coach­class ticketsbecause, compared to householders, businesspeople's demand for travel is

After a corporate merger, Rebecca Jalamid became the CEO of a monopolyfirm.She was surprised to learn that one benefit of being a monopoly was thather company

In Exhibit 9­18, a price discriminating monopolist will charge what price?

Consumer concern about "blood diamonds," a diamond mined in a war zoneand sold to finance an insurgency, invading army's war efforts, or a warlord'sactivity, may have caused a drop in De Beers sales.

Adam Matsumi is an attorney who can charge legal fees above thecompetitive level because entry of new competitors is made more difficult bythe need to hold a(n)

United States Postal Service has successfully leveraged its monopoly powerthrough

In Exhibit 9­18, a non­discriminating monopolist will charge what price?

Which of the following is not an example of price discrimination?

0Cell phone companies offer pricing plan alternatives in order to convert some

The Art and Science of Economic Analysis

Economic Tools and Economics Systems

Economic Decision Makers

Demand Supply and Markets

Elasticity of Demand and Supply

Consumer Choice and Demand

Production and Cost in the Firm

Perfect Competition

Monopolistic Competition and Oligopoly

Resource Markets

Labor Markets and Labor Unions

Capital Interest Entrepreneurship and Corporate Finance

Transaction Costs Imperfect Information and Behavioral Economics

Economic Regulation and Antitrust Policy

Public Goods and Public Choice

Externalities and the Environment

Income Distribution and Poverty

International Trade

International Finance

Economic Development

Filters

In Exhibit 918, how does market segment A differ from market segment B?

Businessclass airline tickets cost much more than coachclass ticketsbecause, compared to householders, businesspeople's demand for travel is

In Exhibit 918, a price discriminating monopolist will charge what price?

In Exhibit 918, a nondiscriminating monopolist will charge what price?