Question 1

A monopolist faces inverse demand $P = 300 - 2 Q$ The monopolist's marginal revenue function is:

Accepted Answer

A)  $M R = 300 - 2 Q$ 
B)  $M R = 300 - Q$ 
C)  $M R = 300 - 4 Q$ 
D)  $M R = \frac { 300 } { Q } - 2$ 
A)  $M R = 300 - 2 Q$ 
B)  $M R = 300 - Q$ 
C)  $M R = 300 - 4 Q$ 
D)  $M R = \frac { 300 } { Q } - 2$

Question 2

As a monopolist's demand curve becomes more inelastic,:

Accepted Answer

A) the profit-maximizing price goes up. 
B) the profit-maximizing price goes down. 
C) the optimal mark-up of price over marginal cost goes down. 
D) average revenue falls. 
A) the profit-maximizing price goes up. 
B) the profit-maximizing price goes down. 
C) the optimal mark-up of price over marginal cost goes down. 
D) average revenue falls.

Question 3

-Based on the graph above, the total economic benefit under monopoly would be:

Accepted Answer

A) 300 
B) 600 
C) 900 
D) 1,200 
A) 300 
B) 600 
C) 900 
D) 1,200

A monopolist faces inverse demand $P = 300 - 2 Q$ The monopolist's marginal revenue function is:

As a monopolist's demand curve becomes more inelastic,:

-Based on the graph above, the total economic benefit under monopoly would be:

Analyzing Economic Problems

Demand and Supply Analysis

Consumer Preferences and the Concept of Utility

Consumer Choice

The Theory of Demand

Inputs and Production Functions

Costs and Cost Minimization

Cost Curves

Perfectly Competitive Markets

Competitive Markets: Applications

Capturing Surplus

Market Structure and Competition

Game Theory and Strategic Behavior

Risk and Information

General Equilibrium Theory

Externalities and Public Goods

Filters

Exam 11: Monopoly and Monopsony

A monopolist faces inverse demand P=300−2QP = 300 - 2 QP=300−2Q The monopolist's marginal revenue function is:

As a monopolist's demand curve becomes more inelastic,:

-Based on the graph above, the total economic benefit under monopoly would be:

Analyzing Economic Problems

Demand and Supply Analysis

Consumer Preferences and the Concept of Utility

Consumer Choice

The Theory of Demand

Inputs and Production Functions

Costs and Cost Minimization

Cost Curves

Perfectly Competitive Markets

Competitive Markets: Applications

Capturing Surplus

Market Structure and Competition

Game Theory and Strategic Behavior

Risk and Information

General Equilibrium Theory

Externalities and Public Goods

Filters

A monopolist faces inverse demand $P = 300 - 2 Q$ The monopolist's marginal revenue function is: