Question 1

A socially optimum price is a price set equal to a firm's marginal cost.

Accepted Answer

A) True 
 B)False  True

Question 2

The following table shows the demand facing an unregulated monopolist:
  
-Refer to the above information to answer this question.What is the value of the price elasticity of demand at the monopolist's maximum total revenue?

Accepted Answer

A) 0. 
B) 0.77. 
C) 1. 
D) 1.31. 
E) 2. 
A) 0. 
B) 0.77. 
C) 1. 
D) 1.31. 
E) 2. C

Question 3

When is a monopolist's total revenue at a maximum?

Accepted Answer

A) When it is equal to its marginal revenue. 
B) When it is equal to its average revenue. 
C) When its marginal revenue is equal to zero. 
D) When its average revenue is equal to its marginal revenue. 
E) When its marginal revenue is at a maximum. 
A) When it is equal to its marginal revenue. 
B) When it is equal to its average revenue. 
C) When its marginal revenue is equal to zero. 
D) When its average revenue is equal to its marginal revenue. 
E) When its marginal revenue is at a maximum. C

Question 4

The following graph depicts the costs and revenues for an unregulated monopolist:
  
-Refer to the graph above to answer this question.What is the monopolist's maximum level of total profits?

Accepted Answer

A) $0. 
B) $6,000. 
C) $8,000. 
D) $18,000. 
E) $48,000. 
A) $0. 
B) $6,000. 
C) $8,000. 
D) $18,000. 
E) $48,000.

Question 5

-Refer to the above graph to answer this question.Suppose that the graph represents a perfectly competitive market.What will be the equilibrium price and quantity?

Accepted Answer

A) $10 and 50. 
B) $12 and 40. 
C) $12 and 100. 
D) $14 and 30. 
E) Cannot be determined. 
A) $10 and 50. 
B) $12 and 40. 
C) $12 and 100. 
D) $14 and 30. 
E) Cannot be determined.

Question 6

All of the following except one are examples of legal barriers to entry.Which is the exception?

Accepted Answer

A) Patent. 
B) Sole ownership of a resource. 
C) Licensing fee. 
D) Copyright. 
A) Patent. 
B) Sole ownership of a resource. 
C) Licensing fee. 
D) Copyright.

Question 7

What are public utilities?

Accepted Answer

A) Goods or services provided by private firms and sold directly to the public. 
B) Goods or services provided by private firms and sold to the government. 
C) Goods or services provided by the government and sold to private firms. 
D) Goods or services which are regarded as essential and which are therefore usually provided by the government. 
A) Goods or services provided by private firms and sold directly to the public. 
B) Goods or services provided by private firms and sold to the government. 
C) Goods or services provided by the government and sold to private firms. 
D) Goods or services which are regarded as essential and which are therefore usually provided by the government.

Question 8

State five criticisms of a monopoly.

Accepted Answer

Monopolies are criticized for:
· being a

Question 9

The following graph gives cost and revenue data for a monopolist:
  
-Refer to the above graph to answer this question.If the monopolist is unregulated and is maximizing its total profits,what is the level of its total revenue?

Accepted Answer

A) $80. 
B) $700. 
C) $1,400. 
D) $3,150. 
E) $4,500. 
A) $80. 
B) $700. 
C) $1,400. 
D) $3,150. 
E) $4,500.

Question 10

All of the following except one are reasons why unregulated monopolies may be undesirable? Which is the exception?

Accepted Answer

A) Monopolies are guaranteed to make economic profits in the long run. 
B) Monopolies are productively inefficient. 
C) Monopolies are allocatively inefficient. 
D) The existence of monopolies may lead to a more unequal distribution of income and wealth. 
E) Monopolists produce below capacity output. 
A) Monopolies are guaranteed to make economic profits in the long run. 
B) Monopolies are productively inefficient. 
C) Monopolies are allocatively inefficient. 
D) The existence of monopolies may lead to a more unequal distribution of income and wealth. 
E) Monopolists produce below capacity output.

Question 11

The following graph gives cost and revenue data for a monopolist:
  
-Refer to the above graph to answer this question.If the monopolist is unregulated and wishes to maximize its total profit,what will be its price and output?

Accepted Answer

A) $0 and 80. 
B) $10 and 70. 
C) $10 and 140. 
D) $40 and 80. 
E) $45 and 70. 
A) $0 and 80. 
B) $10 and 70. 
C) $10 and 140. 
D) $40 and 80. 
E) $45 and 70.

Question 12

The following graph gives cost and revenue data for a monopolist:
  
-Refer to the above graph to answer this question.If the monopolist is regulated and forced to charge a fair-return price,what will be its price and output?

Accepted Answer

A) $10 and 70. 
B) $25 and 110. 
C) $30 and 100. 
D) $45 and 70. 
E) $60 and 40. 
A) $10 and 70. 
B) $25 and 110. 
C) $30 and 100. 
D) $45 and 70. 
E) $60 and 40.

Question 13

Draw a linear demand curve,marginal revenue curve,marginal cost curve,average total cost curve,and an average variable cost curve for a monopolist making an economic loss.Shade in the area of the economic loss.

Accepted Answer

The answer of Draw a linear demand curve,marginal revenue curve,marginal...

Question 14

The following graph gives cost and revenue data for a monopolist:
  
-Refer to the above graph to answer this question.If the monopolist is regulated and forced to charge a fair-return price,what will be its resulting total revenue?

Accepted Answer

A) $700. 
B) $2,400. 
C) $2,750. 
D) $3,000. 
E) $3,150. 
A) $700. 
B) $2,400. 
C) $2,750. 
D) $3,000. 
E) $3,150.

Question 15

A monopolist would never produce in the price range at which the demand was inelastic.Why not?

Accepted Answer

Over the inelastic portion of the monopo

Question 16

Using a graph,contrast monopoly and perfect competition in terms of profit-maximizing price and output.

Accepted Answer

See the fo

Question 17

The following graph shows the average and marginal revenue curves for a monopolist:
  
-Refer to the graph above to answer this question.What is the monopolist's maximum revenue?

Accepted Answer

A) $30. 
B) $60. 
C) $300. 
D) $600. 
E) $9,000. 
A) $30. 
B) $60. 
C) $300. 
D) $600. 
E) $9,000.

Question 18

What is a natural monopoly?

Accepted Answer

A natural monopoly is an indus

Question 19

All,except one,of the following statements regarding the profit-maximizing output of the monopolist are correct.Which is false?

Accepted Answer

A) At that output,the marginal cost will be equal to the price. 
B) At that output,marginal profit is zero. 
C) At that output,the difference between the total revenue and the total cost will be at a maximum. 
D) At that output,marginal cost will equal marginal revenue. 
E) At that output,average revenue will exceed marginal revenue. 
A) At that output,the marginal cost will be equal to the price. 
B) At that output,marginal profit is zero. 
C) At that output,the difference between the total revenue and the total cost will be at a maximum. 
D) At that output,marginal cost will equal marginal revenue. 
E) At that output,average revenue will exceed marginal revenue.

Question 20

The following graph gives cost and revenue data for a monopolist:
  
-Refer to the above graph to answer this question.If the monopolist is regulated and forced to charge the socially optimum price,what will be its resulting total revenue?

Accepted Answer

A) $700. 
B) $2,400. 
C) $2,750. 
D) $3,000. 
E) $3,150. 
A) $700. 
B) $2,400. 
C) $2,750. 
D) $3,000. 
E) $3,150.

A socially optimum price is a price set equal to a firm's marginal cost.

The following table shows the demand facing an unregulated monopolist: -Refer to the above information to answer this question.What is the value of the price elasticity of demand at the monopolist's maximum total revenue?

When is a monopolist's total revenue at a maximum?

The following graph depicts the costs and revenues for an unregulated monopolist: -Refer to the graph above to answer this question.What is the monopolist's maximum level of total profits?

-Refer to the above graph to answer this question.Suppose that the graph represents a perfectly competitive market.What will be the equilibrium price and quantity?

All of the following except one are examples of legal barriers to entry.Which is the exception?

What are public utilities?

State five criticisms of a monopoly.

The following graph gives cost and revenue data for a monopolist: -Refer to the above graph to answer this question.If the monopolist is unregulated and is maximizing its total profits,what is the level of its total revenue?

All of the following except one are reasons why unregulated monopolies may be undesirable? Which is the exception?

The following graph gives cost and revenue data for a monopolist: -Refer to the above graph to answer this question.If the monopolist is unregulated and wishes to maximize its total profit,what will be its price and output?

The following graph gives cost and revenue data for a monopolist: -Refer to the above graph to answer this question.If the monopolist is regulated and forced to charge a fair-return price,what will be its price and output?

Draw a linear demand curve,marginal revenue curve,marginal cost curve,average total cost curve,and an average variable cost curve for a monopolist making an economic loss.Shade in the area of the economic loss.

The following graph gives cost and revenue data for a monopolist: -Refer to the above graph to answer this question.If the monopolist is regulated and forced to charge a fair-return price,what will be its resulting total revenue?

A monopolist would never produce in the price range at which the demand was inelastic.Why not?

Using a graph,contrast monopoly and perfect competition in terms of profit-maximizing price and output.

The following graph shows the average and marginal revenue curves for a monopolist: -Refer to the graph above to answer this question.What is the monopolist's maximum revenue?

What is a natural monopoly?

All,except one,of the following statements regarding the profit-maximizing output of the monopolist are correct.Which is false?

The following graph gives cost and revenue data for a monopolist: -Refer to the above graph to answer this question.If the monopolist is regulated and forced to charge the socially optimum price,what will be its resulting total revenue?

The Economic Problem

Demand and Supply: An Introduction

Demand and Supply: An Elaboration

Elasticity

Consumer Choice

A Firms Production Decisions and Costs in the Short Run

Costs in the Long Run

Perfect Competition

An Evaluation of Competitive Markets

Imperfect Competition

The Factors of Production

International Trade

Filters

Exam 10: Monopoly

A socially optimum price is a price set equal to a firm's marginal cost.

The following table shows the demand facing an unregulated monopolist: -Refer to the above information to answer this question.What is the value of the price elasticity of demand at the monopolist's maximum total revenue?

When is a monopolist's total revenue at a maximum?

The following graph depicts the costs and revenues for an unregulated monopolist: -Refer to the graph above to answer this question.What is the monopolist's maximum level of total profits?

-Refer to the above graph to answer this question.Suppose that the graph represents a perfectly competitive market.What will be the equilibrium price and quantity?

All of the following except one are examples of legal barriers to entry.Which is the exception?

What are public utilities?

State five criticisms of a monopoly.

The following graph gives cost and revenue data for a monopolist: -Refer to the above graph to answer this question.If the monopolist is unregulated and is maximizing its total profits,what is the level of its total revenue?

All of the following except one are reasons why unregulated monopolies may be undesirable? Which is the exception?

The following graph gives cost and revenue data for a monopolist: -Refer to the above graph to answer this question.If the monopolist is unregulated and wishes to maximize its total profit,what will be its price and output?

The following graph gives cost and revenue data for a monopolist: -Refer to the above graph to answer this question.If the monopolist is regulated and forced to charge a fair-return price,what will be its price and output?

Draw a linear demand curve,marginal revenue curve,marginal cost curve,average total cost curve,and an average variable cost curve for a monopolist making an economic loss.Shade in the area of the economic loss.

The following graph gives cost and revenue data for a monopolist: -Refer to the above graph to answer this question.If the monopolist is regulated and forced to charge a fair-return price,what will be its resulting total revenue?

A monopolist would never produce in the price range at which the demand was inelastic.Why not?

Using a graph,contrast monopoly and perfect competition in terms of profit-maximizing price and output.

The following graph shows the average and marginal revenue curves for a monopolist: -Refer to the graph above to answer this question.What is the monopolist's maximum revenue?

What is a natural monopoly?

All,except one,of the following statements regarding the profit-maximizing output of the monopolist are correct.Which is false?

The following graph gives cost and revenue data for a monopolist: -Refer to the above graph to answer this question.If the monopolist is regulated and forced to charge the socially optimum price,what will be its resulting total revenue?

The Economic Problem

Demand and Supply: An Introduction

Demand and Supply: An Elaboration

Elasticity

Consumer Choice

A Firms Production Decisions and Costs in the Short Run

Costs in the Long Run

Perfect Competition

An Evaluation of Competitive Markets

Imperfect Competition

The Factors of Production

International Trade

Filters