Exam 9: Monopoly Markets

Figure 9-6 Figure 9-6 shows the cost and demand curves for a monopolist. -Refer to Figure 9-6.The monopolist earns a profit of

Figure 9-13 Figure 9-13 shows the market demand and cost curves facing a natural monopoly. -Refer to Figure 9-13.If the regulators of the natural monopoly allow the owners of the firm to break even on their investment,the firm will produce an output of ________ and charge a price of ________.

If a monopolist practices perfect price discrimination,

Figure 9-2 Figure 9-2 above shows the demand and cost curves facing a monopolist. -Refer to Figure 9-2.To maximise profit,the firm will produce

Figure 9-15 -Refer to Figure 9-15.With perfect price discrimination,the firm will produce and sell

Suppose an industry is made up of 25 firms,all with equal market share.The four-firm concentration ratio of this industry is

Early adopters are consumers who will pay a high price to be among the first to own new products.

Economic efficiency requires that a natural monopoly's price be set corresponding to the quantity where marginal revenue equals marginal cost.

Why is it necessary for a firm that practices price discrimination be a price maker rather than a price taker?

To maintain a monopoly,a firm must have

The 10-year protection period from generic competition for drug manufacturers is a form of

Most movie theatres charge different prices to different groups of customers for movie admission but not for movie popcorn.Which of the following is a reason for this?

Price discrimination is possible in which of the following market structures? A.perfect competition B.monopoly C.oligopoly D.monopolistic competition

In evaluating the degree of economic efficiency in a market,we can state that the size of the deadweight loss in a market will be smaller

A monopoly firm is the only seller of a good or service that

In the short run,even if a monopoly's total revenue does not cover its variable costs,it should continue to produce because ultimately in the long run,the monopoly will start earning profits.

Figure 9-2 Figure 9-2 above shows the demand and cost curves facing a monopolist. -Refer to Figure 9-2.If the firm's average total cost curve is ATC₂,the firm will

Consider the following pricing strategies: A.perfect price discrimination B.charging different prices to different groups of customers C.optimal two-part tariff D.single-price monopoly pricing Which of the pricing strategies allows a producer to capture the entire consumer surplus that would have gone to consumers under perfect competitive pricing?

Whenever a firm can charge a price greater than marginal cost

Consider an industry that is made up of nine firms,each with a market share (per cent of sales)as follows: A.Firm A: 30% B.Firm B: 20% C.Firms C,D and E: 10% each D.Firms F,G,H and J: 5% each What is the value of the four-firm concentration ratio and how is the industry categorised?