Exam 16: Monopoly

Quantity (units) Price (dollars per unit) 1 8 2 7 3 6 4 5 5 4 6 3 -The table above gives the demand for a monopolist's output.Between which two quantities is marginal revenue equal to 0?

"If a natural monopoly is regulated using a marginal cost pricing rule,the firm makes zero economic profit." Is the previous statement correct or incorrect?

-The above figure represents the market for cable television in Oakland,Florida.Time Warner Communications (TWC)is the sole provider of cable television to the residents of this Central Florida community.If TWC is left unregulated,how many households in Oakland are served?

A single-price monopoly can sell 2 units for $8.50 per unit.In order to sell 3 units,the price must be $8.00 per unit.The marginal revenue from selling the third unit is

If a regulatory agency sets the price equal to marginal cost for a natural monopoly,the

One of the requirements for a monopoly is that

If a firm is able to convert every dollar of consumer surplus to economic profit,the firm has achieved

The key idea behind price discrimination is to convert consumer surplus into

To be able to price discriminate,a firm must

If Microsoft is a monopoly and currently charges prices where its demand is elastic,then Microsoft's marginal revenue is

Assume someone organizes all farms in the nation into a single-price monopoly.As a result,the amount of food produced

Comparing a perfectly competitive market to a single-price monopoly with the same costs,we see that

A single-price monopoly can sell 1 unit for $9.00.To sell 2 units,the price must be $8.50 per unit.The marginal revenue from selling the second unit is

Compare and contrast the marginal cost and average cost pricing rules for regulating natural monopolies.

When a natural monopoly is regulated using a marginal cost pricing rule,what can you say about the firm's profit and the market's efficiency?

Which of the following statements is correct?

For a regulated natural monopoly,the marginal cost pricing rule is a rule that sets price ________ marginal cost and achieves an ________ amount of output.

Firms that can effectively price discriminate

Electric utilities are often considered natural monopolies and are regulated.When would the price be highest: when the utility is not regulated,when it is regulated using an average cost pricing rule,or when it is regulated using a marginal cost pricing rule? When would its price be lowest?

Allegiant Air holds a natural monopoly on most of the routes it serves in the United States.Allegiant Air's marginal revenue will ________ when its total revenue ________.