Exam 13: Monopoly

Of the four market structures,the only one that is characterized by product differentiation is oligopoly.

Many hotel chains offer discounts to Canadian Automobile Association (CAA)members.This is an example of _____ that is _____ in Canada.

Use the following to answer questions : Figure: The Profit-Maximizing Output and Price -(Figure: The Profit-Maximizing Output and Price)Use Figure: The Profit-Maximizing Output and Price.Assume that there are no fixed costs and AC = MC = $200.If this were a perfectly competitive industry,consumer surplus would be:

Suppose a monopoly is producing output so that marginal revenue equals marginal cost.If the monopolist reduces output,it:

Use the following to answer questions : Table: Lunch Price Quantity Demanded \ 10 0 9 10 8 20 7 30 6 40 5 50 4 60 -(Table: Lunch)Use Table: Lunch.This table shows market demand for picnic lunches for people taking all-day rafting trips on the river.Joe has a firm providing this service,and his marginal cost and average cost for each lunch are a constant $4.If Joe is a monopolist,what is deadweight loss in the long run?

If your farm had the only known source of a rare cocoa bean needed to make chocolate-covered peanuts,your monopoly would result from:

Airlines that engage in price discrimination charge higher prices to business travellers because their _____ is more _____ than that of other travellers.

Suppose that you build a high-speed,magnetically powered transportation system from Toronto to Vancouver,and you are the only firm providing this service.High fixed costs resulting from the enormous quantity of capital used in this system enable decreasing average cost for any conceivable level of demand.Your monopoly is the result of your:

Use the following to answer questions : Figure: A Profit-Maximizing Monopoly Firm -(Figure: A Profit-Maximizing Monopoly Firm)Use Figure: A Profit-Maximizing Monopoly Firm.This firm''s profit per unit is:

A firm that can price-discriminate should adjust prices so that customers with _____ demand pay _____ prices than/as do those with _____ demand.

The practice of selling the same product at different prices to different consumers,without corresponding differences in costs,is:

The practice of charging different prices to different customers for the same good or service,even though the cost of supplying those customers is the same,is:

A producer is a monopoly if it is the sole supplier of a good that has no close substitutes.

An oligopoly is characterized as an industry in which:

If a monopoly has a linear demand curve and is producing at the profit-maximizing level of output,at that level of output,demand is:

Suppose that you build a new jumbo jet that can carry five times more passengers than can any other competitor.You have high fixed costs due to the quantity of capital used to build the jets,and average cost is decreasing for all levels of demand.In this case,your monopoly would result from:

A monopoly is MOST likely to be temporary if the monopoly power is derived from:

Suppose a monopoly can separate its customers into two groups.If the monopoly practices price discrimination,it will charge the lower price to the group with:

Natural monopolies are NOT likely to include:

Use the following to answer questions : Table: Prices and Demand Quantity of Hats Demanded Price per Hat 0 \ 30 1 28 2 26 3 24 4 22 5 20 6 18 7 16 8 14 -(Table: Prices and Demand)Use Table: Prices and Demand.The Toronto Maple Leafs have a monopoly on Leafs Saints logo hats.The marginal cost of producing a hat is $18.The Leafs should produce _____ hats and charge _____ to maximize its profits.