Chat with AI
Deck 17: Monopoly
Full screen (f)
Question
Kate's Great Crete (KGC)is a local monopolist of ready-mix concrete.Its annual demand function is 
,where P is the price,in dollars,of a cubic yard of concrete and Q is the number of cubic yards sold per year.What is KGC's inverse demand function?
A)
B)
C)
D)
,where P is the price,in dollars,of a cubic yard of concrete and Q is the number of cubic yards sold per year.What is KGC's inverse demand function?A)
B)
C)
D)
Question
Question
Question
Question
Suppose Kate's Great Crete (KGC)has annual variable costs of 
and marginal costs of 
,where Q is the number of cubic yards of concrete it produces per year.In addition,it has an avoidable fixed cost of $50,000 per year.KGC's demand function is 
What is the profit maximizing sales quantity?
A) 20
B) 2,000
C) 8,000
D) 0
and marginal costs of ,where Q is the number of cubic yards of concrete it produces per year.In addition,it has an avoidable fixed cost of $50,000 per year.KGC's demand function is What is the profit maximizing sales quantity?A) 20
B) 2,000
C) 8,000
D) 0
Question
Suppose Kate's Great Crete (KGC)has annual variable costs of 
and marginal costs of 
,where Q is the number of cubic yards of concrete it produces per year.In addition,it has an avoidable fixed cost of $50,000 per year.KGC's demand function is 
What is KGC's total revenue function?
A)
B)
C)
D)
and marginal costs of ,where Q is the number of cubic yards of concrete it produces per year.In addition,it has an avoidable fixed cost of $50,000 per year.KGC's demand function is What is KGC's total revenue function?A)
B)
C)
D)
Question
Kate's Great Crete (KGC)is a local monopolist of ready-mix concrete.Its annual demand function is 
,where P is the price,in dollars,of a cubic yard of concrete and Q is the number of cubic yards sold per year.What price does KGC charge per unit when it sells 5,000 cubic years of concrete per year?
A) $12.5
B) $25
C) $37.5
D) $50
,where P is the price,in dollars,of a cubic yard of concrete and Q is the number of cubic yards sold per year.What price does KGC charge per unit when it sells 5,000 cubic years of concrete per year?A) $12.5
B) $25
C) $37.5
D) $50
Question
Suppose Kate's Great Crete (KGC)has annual variable costs of 
and marginal costs of 
,where Q is the number of cubic yards of concrete it produces per year.In addition,it has an avoidable fixed cost of $50,000 per year.KGC's demand function is 
What is KGC's average cost function?
A)
B)
C)
D)
and marginal costs of ,where Q is the number of cubic yards of concrete it produces per year.In addition,it has an avoidable fixed cost of $50,000 per year.KGC's demand function is What is KGC's average cost function?A)
B)
C)
D)
Question
Kate's Great Crete (KGC)is a local monopolist of ready-mix concrete.Its annual demand function is 
,where P is the price,in dollars,of a cubic yard of concrete and Q is the number of cubic yards sold per year.What is KGC's marginal revenue when it sells 5,000 cubic years of concrete per year?
A) $37.5
B) $25
C) $50
D) $0
,where P is the price,in dollars,of a cubic yard of concrete and Q is the number of cubic yards sold per year.What is KGC's marginal revenue when it sells 5,000 cubic years of concrete per year?A) $37.5
B) $25
C) $50
D) $0
Question
Suppose Kate's Great Crete (KGC)has annual variable costs of 
and marginal costs of 
,where Q is the number of cubic yards of concrete it produces per year.In addition,it has an avoidable fixed cost of $50,000 per year.KGC's demand function is 
What is KGC's profit at the profit maximizing sales price?
A) $30,000
B) $90,000
C) $120,000
D) -$30,000
and marginal costs of ,where Q is the number of cubic yards of concrete it produces per year.In addition,it has an avoidable fixed cost of $50,000 per year.KGC's demand function is What is KGC's profit at the profit maximizing sales price?A) $30,000
B) $90,000
C) $120,000
D) -$30,000
Question
Kate's Great Crete (KGC)is a local monopolist of ready-mix concrete.Its annual demand function is 
,where P is the price,in dollars,of a cubic yard of concrete and Q is the number of cubic yards sold per year.What is the difference between price and marginal revenue when KGC sells 5,000 cubic years of concrete per year?
A) $12.5
B) $25
C) $37.5
D) $50
,where P is the price,in dollars,of a cubic yard of concrete and Q is the number of cubic yards sold per year.What is the difference between price and marginal revenue when KGC sells 5,000 cubic years of concrete per year?A) $12.5
B) $25
C) $37.5
D) $50
Question
Kate's Great Crete (KGC)is a local monopolist of ready-mix concrete.Its annual demand function is 
,where P is the price,in dollars,of a cubic yard of concrete and Q is the number of cubic yards sold per year.What is KGC's marginal revenue function?
A)
B)
C)
D)
,where P is the price,in dollars,of a cubic yard of concrete and Q is the number of cubic yards sold per year.What is KGC's marginal revenue function?A)
B)
C)
D)
Question
Suppose Kate's Great Crete (KGC)has annual variable costs of 
and marginal costs of 
,where Q is the number of cubic yards of concrete it produces per year.In addition,it has an avoidable fixed cost of $50,000 per year.KGC's demand function is 
What is the profit maximizing sales price?
A) $47.7
B) $30
C) $45
D) $50
and marginal costs of ,where Q is the number of cubic yards of concrete it produces per year.In addition,it has an avoidable fixed cost of $50,000 per year.KGC's demand function is What is the profit maximizing sales price?A) $47.7
B) $30
C) $45
D) $50
Question
Question
Question
Question
Question
Question
Suppose Kate's Great Crete (KGC)has annual variable costs of 
and marginal costs of 
,where Q is the number of cubic yards of concrete it produces per year.In addition,it has an avoidable fixed cost of $50,000 per year.KGC's demand function is 
What is KGC's total cost function?
A)
B)
C)
D)
and marginal costs of ,where Q is the number of cubic yards of concrete it produces per year.In addition,it has an avoidable fixed cost of $50,000 per year.KGC's demand function is What is KGC's total cost function?A)
B)
C)
D)
Question
Question
Question
Question
The Solo Coal Mine is the only employer in the small town of Way out there.The market supply of coal miners is 
,where W is the annual wage of a coal miner and Q is the number of people who would accept employment as a coal miner.What is the coal mine's marginal expenditure when it hires 100 coal miners?
A) $15,000
B) $20,000
C) $10,000
D) $1,000,000
,where W is the annual wage of a coal miner and Q is the number of people who would accept employment as a coal miner.What is the coal mine's marginal expenditure when it hires 100 coal miners?A) $15,000
B) $20,000
C) $10,000
D) $1,000,000
Question
The pass-through rate
A) Is the increase in price that occurs in response to a small increase in marginal cost
B) Is measured per dollar of increase in marginal cost
C) Is the ratio
D) All of these
A) Is the increase in price that occurs in response to a small increase in marginal cost
B) Is measured per dollar of increase in marginal cost
C) Is the ratio
D) All of these
Question
The Solo Coal Mine is the only employer in the small town of Way out there.The market supply of coal miners is 
,where W is the annual wage of a coal miner and Q is the number of people who would accept employment as a coal miner.What is the inverse supply function for coal miners?
A)
B)
C)
D)
,where W is the annual wage of a coal miner and Q is the number of people who would accept employment as a coal miner.What is the inverse supply function for coal miners?A)
B)
C)
D)
Question
Question
Question
The Solo Coal Mine is the only employer in the small town of Way out there.The market supply of coal miners is 
and 
,where W is the annual wage of a coal miner and Q is the number of coal miners.What is the inverse demand function for coal miners?
A)
B)
C)
D)
and ,where W is the annual wage of a coal miner and Q is the number of coal miners.What is the inverse demand function for coal miners?A)
B)
C)
D)
Question
The Solo Coal Mine is the only employer in the small town of Way out there.The market supply of coal miners is 
,where W is the annual wage of a coal miner and Q is the number of people who would accept employment as a coal miner.What is the coal mine's marginal expenditure function?
A)
B)
C)
D)
,where W is the annual wage of a coal miner and Q is the number of people who would accept employment as a coal miner.What is the coal mine's marginal expenditure function?A)
B)
C)
D)
Question
Question
Question
The Solo Coal Mine is the only employer in the small town of Way out there.The market supply of coal miners is 
,where W is the annual wage of a coal miner and Q is the number of people who would accept employment as a coal miner.What is the coal mine's marginal expenditure function?
A)
B)
C)
D)
,where W is the annual wage of a coal miner and Q is the number of people who would accept employment as a coal miner.What is the coal mine's marginal expenditure function?A)
B)
C)
D)
Question
The Solo Coal Mine is the only employer in the small town of Way out there.The market supply of coal miners is 
,where W is the annual wage of a coal miner and Q is the number of people who would accept employment as a coal miner.What is the coal mine's marginal expenditure when it hires 100 coal miners?
A) $35,000
B) $20,000
C) $10,000
D) $30,000
,where W is the annual wage of a coal miner and Q is the number of people who would accept employment as a coal miner.What is the coal mine's marginal expenditure when it hires 100 coal miners?A) $35,000
B) $20,000
C) $10,000
D) $30,000
Question
Question
The Solo Coal Mine is the only employer in the small town of Way out there.The market supply of coal miners is 
,where W is the annual wage of a coal miner and Q is the number of people who would accept employment as a coal miner.What is the coal mine's marginal expenditure when it hires 150 coal miners?
A) $17,500
B) $30,500
C) $10,000
D) $25,000
,where W is the annual wage of a coal miner and Q is the number of people who would accept employment as a coal miner.What is the coal mine's marginal expenditure when it hires 150 coal miners?A) $17,500
B) $30,500
C) $10,000
D) $25,000
Question
The Solo Coal Mine is the only employer in the small town of Way out there.The market supply of coal miners is 
,where W is the annual wage of a coal miner and Q is the number of people who would accept employment as a coal miner.What is the inverse supply function for coal miners?
A)
B)
C)
D)
,where W is the annual wage of a coal miner and Q is the number of people who would accept employment as a coal miner.What is the inverse supply function for coal miners?A)
B)
C)
D)
Question
Question
The Solo Coal Mine is the only employer in the small town of Way out there.The market supply of coal miners is 
and 
,where W is the annual wage of a coal miner and Q is the number of coal miners.What is marginal benefit function?
A)
B)
C)
D)
and ,where W is the annual wage of a coal miner and Q is the number of coal miners.What is marginal benefit function?A)
B)
C)
D)
Question
Question
The Solo Coal Mine is the only employer in the small town of Way out there.The market supply of coal miners is 
,where W is the annual wage of a coal miner and Q is the number of people who would accept employment as a coal miner.What is the coal mine's marginal expenditure when it hires 150 coal miners?
A) $35,000
B) $20,000
C) $10,000
D) $5,000
,where W is the annual wage of a coal miner and Q is the number of people who would accept employment as a coal miner.What is the coal mine's marginal expenditure when it hires 150 coal miners?A) $35,000
B) $20,000
C) $10,000
D) $5,000
Question
The Solo Coal Mine is the only employer in the small town of Way out there.The market supply of coal miners is 
and 
,where W is the annual wage of a coal miner and Q is the number of coal miners.What is the profit maximizing number of coal miners for the coal mine to hire?
A) 100
B) 150
C) 50
D) 233.34
and ,where W is the annual wage of a coal miner and Q is the number of coal miners.What is the profit maximizing number of coal miners for the coal mine to hire?A) 100
B) 150
C) 50
D) 233.34
Question
Question
The Solo Coal Mine is the only employer in the small town of Way out there.The market supply of coal miners is 
and 
,where W is the annual wage of a coal miner and Q is the number of coal miners.What is the inverse demand function for coal miners?
A)
B)
C)
D)
and ,where W is the annual wage of a coal miner and Q is the number of coal miners.What is the inverse demand function for coal miners?A)
B)
C)
D)
Question
The Solo Coal Mine is the only employer in the small town of Way out there.The market supply of coal miners is 
and 
,where W is the annual wage of a coal miner and Q is the number of coal miners.What is the deadweight loss due to the monophony in the coal miners market?
A) $27,755.56
B) $13,877.78
C) $56,094.22
D) $28,047.11
and ,where W is the annual wage of a coal miner and Q is the number of coal miners.What is the deadweight loss due to the monophony in the coal miners market?A) $27,755.56
B) $13,877.78
C) $56,094.22
D) $28,047.11
Question
The Solo Coal Mine is the only employer in the small town of Way out there.The market supply of coal miners is 
and 
,where W is the annual wage of a coal miner and Q is the number of coal miners.What is the deadweight loss in the market for coal miners due to the monophony?
A) $250,000
B) $500,000
C) $125,000
D) $750,000
and ,where W is the annual wage of a coal miner and Q is the number of coal miners.What is the deadweight loss in the market for coal miners due to the monophony?A) $250,000
B) $500,000
C) $125,000
D) $750,000
Question
The Solo Coal Mine is the only employer in the small town of Way out there.The market supply of coal miners is 
and 
,where W is the annual wage of a coal miner and Q is the number of coal miners.What is the profit maximizing number of coal miners for the coal mine to hire?
A) 300
B) 150
C) 100
D) 33.34
and ,where W is the annual wage of a coal miner and Q is the number of coal miners.What is the profit maximizing number of coal miners for the coal mine to hire?A) 300
B) 150
C) 100
D) 33.34
Question
The Solo Coal Mine is the only employer in the small town of Way out there.The market supply of coal miners is 
and 
,where W is the annual wage of a coal miner and Q is the number of coal miners.What is the marginal benefit of coal miners?
A)
B)
C)
D)
and ,where W is the annual wage of a coal miner and Q is the number of coal miners.What is the marginal benefit of coal miners?A)
B)
C)
D)
Question
Question
The Solo Coal Mine is the only employer in the small town of Way out there.The market supply of coal miners is 
and 
,where W is the annual wage of a coal miner and Q is the number of coal miners.What wage must be paid at the profit maximizing quantity of coal miners?
A) $23,333
B) $16,670
C) $13,336
D) $21,667
and ,where W is the annual wage of a coal miner and Q is the number of coal miners.What wage must be paid at the profit maximizing quantity of coal miners?A) $23,333
B) $16,670
C) $13,336
D) $21,667
Question
Question
The Solo Coal Mine is the only employer in the small town of Way out there.The market supply of coal miners is 
and 
,where W is the annual wage of a coal miner and Q is the number of coal miners.What is the wage required to hire the profit maximizing number of workers?
A) $25,000
B) $50,000
C) $20,000
D) $15,000
and ,where W is the annual wage of a coal miner and Q is the number of coal miners.What is the wage required to hire the profit maximizing number of workers?A) $25,000
B) $50,000
C) $20,000
D) $15,000
Question
Unlock Deck
Sign up to unlock the cards in this deck!
Unlock Deck
Unlock Deck
1/52
Play
Full screen (f)
Deck 17: Monopoly
1
Kate's Great Crete (KGC)is a local monopolist of ready-mix concrete.Its annual demand function is ,where P is the price,in dollars,of a cubic yard of concrete and Q is the number of cubic yards sold per year.What is KGC's inverse demand function?
A)
B)
C)
D)
,where P is the price,in dollars,of a cubic yard of concrete and Q is the number of cubic yards sold per year.What is KGC's inverse demand function?A)
B)
C)
D)
2
When a monopolist maximizes its profit by selling a positive amount
A) Its marginal revenue must equal its marginal cost at that quantity
B) Its marginal revenue must exceed its marginal cost at that quantity
C) Its marginal revenue must be less than its marginal cost at that quantity
D) Its marginal revenue must be equal to zero
A) Its marginal revenue must equal its marginal cost at that quantity
B) Its marginal revenue must exceed its marginal cost at that quantity
C) Its marginal revenue must be less than its marginal cost at that quantity
D) Its marginal revenue must be equal to zero
Its marginal revenue must equal its marginal cost at that quantity
3
The more elastic is the demand for a product
A) The greater the difference between marginal revenue and price
B) The closer is marginal revenue to the price
C) The more a firm must reduce its price to increase its sales
D) The more a firm must reduce its cost to increase its sales
A) The greater the difference between marginal revenue and price
B) The closer is marginal revenue to the price
C) The more a firm must reduce its price to increase its sales
D) The more a firm must reduce its cost to increase its sales
The closer is marginal revenue to the price
4
Significant market power exists in
A) All markets
B) Perfectly competitive markets
C) Unregulated markets
D) Monopoly markets and Oligopoly markets
A) All markets
B) Perfectly competitive markets
C) Unregulated markets
D) Monopoly markets and Oligopoly markets
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
5
Suppose Kate's Great Crete (KGC)has annual variable costs of and marginal costs of ,where Q is the number of cubic yards of concrete it produces per year.In addition,it has an avoidable fixed cost of $50,000 per year.KGC's demand function is What is the profit maximizing sales quantity?
A) 20
B) 2,000
C) 8,000
D) 0
and marginal costs of ,where Q is the number of cubic yards of concrete it produces per year.In addition,it has an avoidable fixed cost of $50,000 per year.KGC's demand function is What is the profit maximizing sales quantity?A) 20
B) 2,000
C) 8,000
D) 0
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
6
Suppose Kate's Great Crete (KGC)has annual variable costs of and marginal costs of ,where Q is the number of cubic yards of concrete it produces per year.In addition,it has an avoidable fixed cost of $50,000 per year.KGC's demand function is What is KGC's total revenue function?
A)
B)
C)
D)
and marginal costs of ,where Q is the number of cubic yards of concrete it produces per year.In addition,it has an avoidable fixed cost of $50,000 per year.KGC's demand function is What is KGC's total revenue function?A)
B)
C)
D)
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
7
Kate's Great Crete (KGC)is a local monopolist of ready-mix concrete.Its annual demand function is ,where P is the price,in dollars,of a cubic yard of concrete and Q is the number of cubic yards sold per year.What price does KGC charge per unit when it sells 5,000 cubic years of concrete per year?
A) $12.5
B) $25
C) $37.5
D) $50
,where P is the price,in dollars,of a cubic yard of concrete and Q is the number of cubic yards sold per year.What price does KGC charge per unit when it sells 5,000 cubic years of concrete per year?A) $12.5
B) $25
C) $37.5
D) $50
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
8
Suppose Kate's Great Crete (KGC)has annual variable costs of and marginal costs of ,where Q is the number of cubic yards of concrete it produces per year.In addition,it has an avoidable fixed cost of $50,000 per year.KGC's demand function is What is KGC's average cost function?
A)
B)
C)
D)
and marginal costs of ,where Q is the number of cubic yards of concrete it produces per year.In addition,it has an avoidable fixed cost of $50,000 per year.KGC's demand function is What is KGC's average cost function?A)
B)
C)
D)
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
9
Kate's Great Crete (KGC)is a local monopolist of ready-mix concrete.Its annual demand function is ,where P is the price,in dollars,of a cubic yard of concrete and Q is the number of cubic yards sold per year.What is KGC's marginal revenue when it sells 5,000 cubic years of concrete per year?
A) $37.5
B) $25
C) $50
D) $0
,where P is the price,in dollars,of a cubic yard of concrete and Q is the number of cubic yards sold per year.What is KGC's marginal revenue when it sells 5,000 cubic years of concrete per year?A) $37.5
B) $25
C) $50
D) $0
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
10
Suppose Kate's Great Crete (KGC)has annual variable costs of and marginal costs of ,where Q is the number of cubic yards of concrete it produces per year.In addition,it has an avoidable fixed cost of $50,000 per year.KGC's demand function is What is KGC's profit at the profit maximizing sales price?
A) $30,000
B) $90,000
C) $120,000
D) -$30,000
and marginal costs of ,where Q is the number of cubic yards of concrete it produces per year.In addition,it has an avoidable fixed cost of $50,000 per year.KGC's demand function is What is KGC's profit at the profit maximizing sales price?A) $30,000
B) $90,000
C) $120,000
D) -$30,000
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
11
Kate's Great Crete (KGC)is a local monopolist of ready-mix concrete.Its annual demand function is ,where P is the price,in dollars,of a cubic yard of concrete and Q is the number of cubic yards sold per year.What is the difference between price and marginal revenue when KGC sells 5,000 cubic years of concrete per year?
A) $12.5
B) $25
C) $37.5
D) $50
,where P is the price,in dollars,of a cubic yard of concrete and Q is the number of cubic yards sold per year.What is the difference between price and marginal revenue when KGC sells 5,000 cubic years of concrete per year?A) $12.5
B) $25
C) $37.5
D) $50
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
12
Kate's Great Crete (KGC)is a local monopolist of ready-mix concrete.Its annual demand function is ,where P is the price,in dollars,of a cubic yard of concrete and Q is the number of cubic yards sold per year.What is KGC's marginal revenue function?
A)
B)
C)
D)
,where P is the price,in dollars,of a cubic yard of concrete and Q is the number of cubic yards sold per year.What is KGC's marginal revenue function?A)
B)
C)
D)
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
13
Suppose Kate's Great Crete (KGC)has annual variable costs of and marginal costs of ,where Q is the number of cubic yards of concrete it produces per year.In addition,it has an avoidable fixed cost of $50,000 per year.KGC's demand function is What is the profit maximizing sales price?
A) $47.7
B) $30
C) $45
D) $50
and marginal costs of ,where Q is the number of cubic yards of concrete it produces per year.In addition,it has an avoidable fixed cost of $50,000 per year.KGC's demand function is What is the profit maximizing sales price?A) $47.7
B) $30
C) $45
D) $50
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
14
A firm has market power
A) When it can profitably charge any price of it's choosing
B) When it is characterized as a price taker
C) When it can profitably charge a price that is above its marginal cost
D) Only when it is the sole firm producing in a market
A) When it can profitably charge any price of it's choosing
B) When it is characterized as a price taker
C) When it can profitably charge a price that is above its marginal cost
D) Only when it is the sole firm producing in a market
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
15
A firm's Lerner Index
A) Is the amount by which its price exceeds its marginal cost, expressed as a percentage of its price
B) Is the amount by which its marginal cost exceeds its average cost
C) Is the amount by which its average cost exceeds its marginal cost
D) Is the value of its profit
A) Is the amount by which its price exceeds its marginal cost, expressed as a percentage of its price
B) Is the amount by which its marginal cost exceeds its average cost
C) Is the amount by which its average cost exceeds its marginal cost
D) Is the value of its profit
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
16
A firm's markup
A) Is the amount by which its price exceeds its marginal cost, expressed as a percentage of its price
B) Is the amount by which its marginal cost exceeds its average cost
C) Is the amount by which its average cost exceeds its marginal cost
D) Is the value of its profit
A) Is the amount by which its price exceeds its marginal cost, expressed as a percentage of its price
B) Is the amount by which its marginal cost exceeds its average cost
C) Is the amount by which its average cost exceeds its marginal cost
D) Is the value of its profit
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
17
A firm's price-cost margin
A) Is the amount by which its price exceeds its marginal cost, expressed as a percentage of its price
B) Is the amount by which its marginal cost exceeds its average cost
C) Is the amount by which its average cost exceeds its marginal cost
D) Is the value of its profit
A) Is the amount by which its price exceeds its marginal cost, expressed as a percentage of its price
B) Is the amount by which its marginal cost exceeds its average cost
C) Is the amount by which its average cost exceeds its marginal cost
D) Is the value of its profit
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
18
A monopoly market is
A) A market with many sellers
B) A market with a single seller
C) A market with a few sellers
D) A market with a few buyers
A) A market with many sellers
B) A market with a single seller
C) A market with a few sellers
D) A market with a few buyers
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
19
Suppose Kate's Great Crete (KGC)has annual variable costs of and marginal costs of ,where Q is the number of cubic yards of concrete it produces per year.In addition,it has an avoidable fixed cost of $50,000 per year.KGC's demand function is What is KGC's total cost function?
A)
B)
C)
D)
and marginal costs of ,where Q is the number of cubic yards of concrete it produces per year.In addition,it has an avoidable fixed cost of $50,000 per year.KGC's demand function is What is KGC's total cost function?A)
B)
C)
D)
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
20
An oligopoly market is
A) A market with many sellers
B) A market with a single seller
C) A market with a few sellers
D) A market with a few buyers
A) A market with many sellers
B) A market with a single seller
C) A market with a few sellers
D) A market with a few buyers
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
21
If a firm's pass-through rate is greater than one
A) It could be behaving either competitively or as a monopolist
B) It must be a considered competitive
C) It is not behaving like a price taker
D) It is not behaving like a monopolist
A) It could be behaving either competitively or as a monopolist
B) It must be a considered competitive
C) It is not behaving like a price taker
D) It is not behaving like a monopolist
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
22
A monopolist's marginal expenditure is
A) The extra benefit from hiring or purchasing the marginal unit of an input, per marginal unit
B) The extra cost incurred to hire or purchase the marginal units of an input, per marginal unit
C) The difference between the marginal cost and benefit from hiring the marginal unit of an input, per marginal unit
D) The total cost incurred to hire or purchase all units of an input in the production process
A) The extra benefit from hiring or purchasing the marginal unit of an input, per marginal unit
B) The extra cost incurred to hire or purchase the marginal units of an input, per marginal unit
C) The difference between the marginal cost and benefit from hiring the marginal unit of an input, per marginal unit
D) The total cost incurred to hire or purchase all units of an input in the production process
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
23
The Solo Coal Mine is the only employer in the small town of Way out there.The market supply of coal miners is ,where W is the annual wage of a coal miner and Q is the number of people who would accept employment as a coal miner.What is the coal mine's marginal expenditure when it hires 100 coal miners?
A) $15,000
B) $20,000
C) $10,000
D) $1,000,000
,where W is the annual wage of a coal miner and Q is the number of people who would accept employment as a coal miner.What is the coal mine's marginal expenditure when it hires 100 coal miners?A) $15,000
B) $20,000
C) $10,000
D) $1,000,000
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
24
The pass-through rate
A) Is the increase in price that occurs in response to a small increase in marginal cost
B) Is measured per dollar of increase in marginal cost
C) Is the ratio
D) All of these
A) Is the increase in price that occurs in response to a small increase in marginal cost
B) Is measured per dollar of increase in marginal cost
C) Is the ratio
D) All of these
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
25
The Solo Coal Mine is the only employer in the small town of Way out there.The market supply of coal miners is ,where W is the annual wage of a coal miner and Q is the number of people who would accept employment as a coal miner.What is the inverse supply function for coal miners?
A)
B)
C)
D)
,where W is the annual wage of a coal miner and Q is the number of people who would accept employment as a coal miner.What is the inverse supply function for coal miners?A)
B)
C)
D)
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
26
A monophony market
A) Is a market with a single buyer
B) Is a market with a single seller
C) Is a market with a single input
D) Is a market with a single product
A) Is a market with a single buyer
B) Is a market with a single seller
C) Is a market with a single input
D) Is a market with a single product
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
27
The pass through rate
A) Is always greater than one in a perfectly competitive market
B) Is never greater than one in a perfectly competitive market
C) Is always greater than one for a monopolist
D) Is always less than one for a monopolist
A) Is always greater than one in a perfectly competitive market
B) Is never greater than one in a perfectly competitive market
C) Is always greater than one for a monopolist
D) Is always less than one for a monopolist
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
28
The Solo Coal Mine is the only employer in the small town of Way out there.The market supply of coal miners is and ,where W is the annual wage of a coal miner and Q is the number of coal miners.What is the inverse demand function for coal miners?
A)
B)
C)
D)
and ,where W is the annual wage of a coal miner and Q is the number of coal miners.What is the inverse demand function for coal miners?A)
B)
C)
D)
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
29
The Solo Coal Mine is the only employer in the small town of Way out there.The market supply of coal miners is ,where W is the annual wage of a coal miner and Q is the number of people who would accept employment as a coal miner.What is the coal mine's marginal expenditure function?
A)
B)
C)
D)
,where W is the annual wage of a coal miner and Q is the number of people who would accept employment as a coal miner.What is the coal mine's marginal expenditure function?A)
B)
C)
D)
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
30
A firm's markup over its marginal cost is greater
A) The more elastic is the demand curve
B) The less elastic is the demand curve
C) The lower its fixed costs
D) The lower its average costs
A) The more elastic is the demand curve
B) The less elastic is the demand curve
C) The lower its fixed costs
D) The lower its average costs
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
31
A monopolist
A) Faces a downward sloping demand curve and by lowering the quantity he sells, he can charge more
B) Faces a horizontal demand curve and by raising price, he will lose all of his consumers
C) Faces an upward sloping supply curve and by lowering the quantity he buys, he can pay less
D) Faces a downward sloping supply curve and by increasing the quantity he buys, he can pay less
A) Faces a downward sloping demand curve and by lowering the quantity he sells, he can charge more
B) Faces a horizontal demand curve and by raising price, he will lose all of his consumers
C) Faces an upward sloping supply curve and by lowering the quantity he buys, he can pay less
D) Faces a downward sloping supply curve and by increasing the quantity he buys, he can pay less
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
32
The Solo Coal Mine is the only employer in the small town of Way out there.The market supply of coal miners is ,where W is the annual wage of a coal miner and Q is the number of people who would accept employment as a coal miner.What is the coal mine's marginal expenditure function?
A)
B)
C)
D)
,where W is the annual wage of a coal miner and Q is the number of people who would accept employment as a coal miner.What is the coal mine's marginal expenditure function?A)
B)
C)
D)
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
33
The Solo Coal Mine is the only employer in the small town of Way out there.The market supply of coal miners is ,where W is the annual wage of a coal miner and Q is the number of people who would accept employment as a coal miner.What is the coal mine's marginal expenditure when it hires 100 coal miners?
A) $35,000
B) $20,000
C) $10,000
D) $30,000
,where W is the annual wage of a coal miner and Q is the number of people who would accept employment as a coal miner.What is the coal mine's marginal expenditure when it hires 100 coal miners?A) $35,000
B) $20,000
C) $10,000
D) $30,000
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
34
A monopolist's profit maximizing price depends upon
A) The elasticity of demand
B) Level of demand
C) The elasticity of supply
D) The level of supply
A) The elasticity of demand
B) Level of demand
C) The elasticity of supply
D) The level of supply
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
35
The Solo Coal Mine is the only employer in the small town of Way out there.The market supply of coal miners is ,where W is the annual wage of a coal miner and Q is the number of people who would accept employment as a coal miner.What is the coal mine's marginal expenditure when it hires 150 coal miners?
A) $17,500
B) $30,500
C) $10,000
D) $25,000
,where W is the annual wage of a coal miner and Q is the number of people who would accept employment as a coal miner.What is the coal mine's marginal expenditure when it hires 150 coal miners?A) $17,500
B) $30,500
C) $10,000
D) $25,000
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
36
The Solo Coal Mine is the only employer in the small town of Way out there.The market supply of coal miners is ,where W is the annual wage of a coal miner and Q is the number of people who would accept employment as a coal miner.What is the inverse supply function for coal miners?
A)
B)
C)
D)
,where W is the annual wage of a coal miner and Q is the number of people who would accept employment as a coal miner.What is the inverse supply function for coal miners?A)
B)
C)
D)
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
37
The difference between a monopolist's marginal expenditure and that of a price taker is
A) The marginal cost of the input
B) The input expansion effect
C) The price increase effect
D) The price decrease effect
A) The marginal cost of the input
B) The input expansion effect
C) The price increase effect
D) The price decrease effect
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
38
The Solo Coal Mine is the only employer in the small town of Way out there.The market supply of coal miners is and ,where W is the annual wage of a coal miner and Q is the number of coal miners.What is marginal benefit function?
A)
B)
C)
D)
and ,where W is the annual wage of a coal miner and Q is the number of coal miners.What is marginal benefit function?A)
B)
C)
D)
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
39
The deadweight loss from monopoly pricing is
A) The amount by which aggregate surplus falls short of its minimum possible value, which is attained in a perfectly competitive market
B) The amount by which consumer surplus exceeds producer surplus
C) The amount by which aggregate surplus falls short of its maximum possible value, which is attained in a perfectly competitive market
D) The amount by which producer surplus exceeds consumer surplus
A) The amount by which aggregate surplus falls short of its minimum possible value, which is attained in a perfectly competitive market
B) The amount by which consumer surplus exceeds producer surplus
C) The amount by which aggregate surplus falls short of its maximum possible value, which is attained in a perfectly competitive market
D) The amount by which producer surplus exceeds consumer surplus
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
40
The Solo Coal Mine is the only employer in the small town of Way out there.The market supply of coal miners is ,where W is the annual wage of a coal miner and Q is the number of people who would accept employment as a coal miner.What is the coal mine's marginal expenditure when it hires 150 coal miners?
A) $35,000
B) $20,000
C) $10,000
D) $5,000
,where W is the annual wage of a coal miner and Q is the number of people who would accept employment as a coal miner.What is the coal mine's marginal expenditure when it hires 150 coal miners?A) $35,000
B) $20,000
C) $10,000
D) $5,000
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
41
The Solo Coal Mine is the only employer in the small town of Way out there.The market supply of coal miners is and ,where W is the annual wage of a coal miner and Q is the number of coal miners.What is the profit maximizing number of coal miners for the coal mine to hire?
A) 100
B) 150
C) 50
D) 233.34
and ,where W is the annual wage of a coal miner and Q is the number of coal miners.What is the profit maximizing number of coal miners for the coal mine to hire?A) 100
B) 150
C) 50
D) 233.34
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
42
Explain the difference between a monopoly and a monophony.
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
43
The Solo Coal Mine is the only employer in the small town of Way out there.The market supply of coal miners is and ,where W is the annual wage of a coal miner and Q is the number of coal miners.What is the inverse demand function for coal miners?
A)
B)
C)
D)
and ,where W is the annual wage of a coal miner and Q is the number of coal miners.What is the inverse demand function for coal miners?A)
B)
C)
D)
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
44
The Solo Coal Mine is the only employer in the small town of Way out there.The market supply of coal miners is and ,where W is the annual wage of a coal miner and Q is the number of coal miners.What is the deadweight loss due to the monophony in the coal miners market?
A) $27,755.56
B) $13,877.78
C) $56,094.22
D) $28,047.11
and ,where W is the annual wage of a coal miner and Q is the number of coal miners.What is the deadweight loss due to the monophony in the coal miners market?A) $27,755.56
B) $13,877.78
C) $56,094.22
D) $28,047.11
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
45
The Solo Coal Mine is the only employer in the small town of Way out there.The market supply of coal miners is and ,where W is the annual wage of a coal miner and Q is the number of coal miners.What is the deadweight loss in the market for coal miners due to the monophony?
A) $250,000
B) $500,000
C) $125,000
D) $750,000
and ,where W is the annual wage of a coal miner and Q is the number of coal miners.What is the deadweight loss in the market for coal miners due to the monophony?A) $250,000
B) $500,000
C) $125,000
D) $750,000
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
46
The Solo Coal Mine is the only employer in the small town of Way out there.The market supply of coal miners is and ,where W is the annual wage of a coal miner and Q is the number of coal miners.What is the profit maximizing number of coal miners for the coal mine to hire?
A) 300
B) 150
C) 100
D) 33.34
and ,where W is the annual wage of a coal miner and Q is the number of coal miners.What is the profit maximizing number of coal miners for the coal mine to hire?A) 300
B) 150
C) 100
D) 33.34
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
47
The Solo Coal Mine is the only employer in the small town of Way out there.The market supply of coal miners is and ,where W is the annual wage of a coal miner and Q is the number of coal miners.What is the marginal benefit of coal miners?
A)
B)
C)
D)
and ,where W is the annual wage of a coal miner and Q is the number of coal miners.What is the marginal benefit of coal miners?A)
B)
C)
D)
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
48
A loss leader
A) Is a product that is sold at a price above its direct marginal cost to encourage sales of a complementary product
B) Is a product that is sold at a price below its direct marginal cost to encourage sales of a substitutable good
C) Is a product that is sold at a price below its direct marginal cost to encourage sales of a complementary good
D) Is a product that is sold at a price below its variable cost to encourage sales of a complementary good
A) Is a product that is sold at a price above its direct marginal cost to encourage sales of a complementary product
B) Is a product that is sold at a price below its direct marginal cost to encourage sales of a substitutable good
C) Is a product that is sold at a price below its direct marginal cost to encourage sales of a complementary good
D) Is a product that is sold at a price below its variable cost to encourage sales of a complementary good
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
49
The Solo Coal Mine is the only employer in the small town of Way out there.The market supply of coal miners is and ,where W is the annual wage of a coal miner and Q is the number of coal miners.What wage must be paid at the profit maximizing quantity of coal miners?
A) $23,333
B) $16,670
C) $13,336
D) $21,667
and ,where W is the annual wage of a coal miner and Q is the number of coal miners.What wage must be paid at the profit maximizing quantity of coal miners?A) $23,333
B) $16,670
C) $13,336
D) $21,667
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
50
A market is a natural monopoly when
A) A good is produced most economically by several firms
B) A good is produced most economically by one firm
C) The government grants a firm a patent on a good
D) The firm's average cost function is everywhere upward sloping
A) A good is produced most economically by several firms
B) A good is produced most economically by one firm
C) The government grants a firm a patent on a good
D) The firm's average cost function is everywhere upward sloping
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
51
The Solo Coal Mine is the only employer in the small town of Way out there.The market supply of coal miners is and ,where W is the annual wage of a coal miner and Q is the number of coal miners.What is the wage required to hire the profit maximizing number of workers?
A) $25,000
B) $50,000
C) $20,000
D) $15,000
and ,where W is the annual wage of a coal miner and Q is the number of coal miners.What is the wage required to hire the profit maximizing number of workers?A) $25,000
B) $50,000
C) $20,000
D) $15,000
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
52
Discuss the difference between first-best and second-best price regulation.In your answer,you should address why governments regulate markets and the difficulties faced when doing so.
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
Unlock Deck
k this deck
Unlock Deck
Unlock for access to all 52 flashcards in this deck.
