Exam 10: Monopoly

A monopolist that practices perfect price discrimination has the same deadweight loss triangle as the single-price monopolist.

Exhibit 23-2 Refer to Exhibit 23-2. Total revenue at the profit-maximizing quantity of output is the

Which of the following is the best example of a barrier to entry into a monopolistic industry?

Exhibit 23-10 Refer to Exhibit 23-10. The profit-maximizing single-price monopolist incurs total cost equal to what area?

A monopoly may exist because

Since price __________ for a monopoly firm, the profit-maximizing monopoly firm does not produce the quantity of output for which price equals marginal cost.

In general, electric, gas, and water companies are examples of __________  monopolies.

Suppose Johnny, seven years old, is selling lemonade to his neighbors and he sells each of his buyers the refreshment for the maximum price that each buyer is willing to pay. Johnny is practicing

The monopolist's demand curve is

Exhibit 23-2 Refer to Exhibit 23-2. The profit-maximizing monopolist produces Q₀ units and charges a price of

When a monopolist can perfectly price discriminate, it follows that

For a monopoly firm, marginal revenue equals marginal cost at 100 units (of output). At 100 units, price is above marginal cost. It follows that the monopoly firm

Exhibit 23-8 Refer to Exhibit 23-8. Assuming that total fixed costs are $80, the average variable cost of producing 5 units of output is

If a price-discriminating monopoly charges a lower price to individuals in city X, it is likely that the firm

Which of the following statements is true?

Exhibit 23-6 Refer to Exhibit 23-6. The price and quantity of a single-price monopolist producing good X are P₀ and q_B, respectively. The marginal revenue curve is represented by

Exhibit 23-1 Refer to Exhibit 23-1. If the product is produced under single-price monopoly, what do total costs equal at the profit maximizing level of output?

Exhibit 23-5 Refer to Exhibit 23-5. What area represents lost revenue when price goes from P₂ to P₁?

Which of the following is not an example of a legal barrier to entry?

Describe the similarities between why sellers want to price discriminate and why district attorneys want to plea-bargain.  In addition, discuss the conditions that must be satisfied before district attorneys (DAs)can plea-bargain successfully and how they relate to the three conditions necessary for successful price discrimination.