Question 1

Movie theatres charge different prices to different groups of people based on the differing marginal costs that exist from group to group.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following statements is correct for a monopolist?
i.The firm maximizes profits by equating marginal revenue with marginal cost.
ii.The firm maximizes profits by equating price with marginal cost.
iii.Demand equals marginal revenue.
iv.Average revenue equals price.

Accepted Answer

A)  i) ,iii) ,and iv) only
B)  i) and iv) only
C)  i) ,ii) ,and iv) only
D)  i) ,ii) ,iii) ,and iv) E) A) and B)
F) B) and C)

Question 3

If the monopolist's linear demand curve intersects the quantity axis at Q = 30,then the monopolist's marginal revenue will be equal to zero at

Accepted Answer

A)  Q = 10.
B)  Q = 15.
C)  Q = 20.
D)  Q = 30.E) All of the above
F) C) and D)

Question 4

In a monopoly market,the socially efficient quantity of output is typically higher than the profit-maximizing quantity of output for the monopolist.

Accepted Answer

A) True 
 B)False

Question 5

Explain how a profit-maximizing monopolist chooses its level of output and the price of its goods.

Accepted Answer

A profit-maximizing monopolist produces ...

Question 6

Figure 15-7

-Refer to Figure 15-7.What is the socially efficient price and quantity?

Accepted Answer

A)  price = F; quantity = A
B)  price = G; quantity = B
C)  price = G; quantity = A
D)  price = D; quantity = AE) B) and C)
F) A) and B)

Question 7

The fundamental source of monopoly power is

Accepted Answer

A)  barriers to entry.
B)  profit.
C)  decreasing average total cost.
D)  a product without close substitutes.E) C) and D)
F) None of the above

Question 8

One difference between a perfectly competitive firm and a monopoly is that a perfectly competitive firm produces where

Accepted Answer

A)  marginal cost equals price,while a monopolist produces where price exceeds marginal cost.
B)  marginal cost equals price,while a monopolist produces where marginal cost exceeds price.
C)  price exceeds marginal cost,while a monopolist produces where marginal cost equals price.
D)  marginal cost exceeds price,while a monopolist produces where marginal cost equals price.E) None of the above
F) A) and D)

Question 9

Even with market power,monopolists cannot achieve any level of profit they desire because they will sell lower quantities at higher prices.

Accepted Answer

A) True 
 B)False

Question 10

Because many good substitutes exist for a competitive firm's product,the demand curve that it faces is

Accepted Answer

A)  unit-elastic.
B)  perfectly inelastic.
C)  perfectly elastic.
D)  inelastic only over a certain region.E) All of the above
F) None of the above

Exam 15: Monopoly

Because many good substitutes exist for a competitive firm's product,the demand curve that it faces is

Correct Answer
verified

Even with market power,monopolists cannot achieve any level of profit they desire because they will sell lower quantities at higher prices.

Correct Answer
verified

Explain how a profit-maximizing monopolist chooses its level of output and the price of its goods.

Correct Answer
verified
A profit-maximizing monopolist produces ...
View Answer

In a monopoly market,the socially efficient quantity of output is typically higher than the profit-maximizing quantity of output for the monopolist.

Correct Answer
verified

The fundamental source of monopoly power is

Correct Answer
verified

Movie theatres charge different prices to different groups of people based on the differing marginal costs that exist from group to group.

Correct Answer
verified

One difference between a perfectly competitive firm and a monopoly is that a perfectly competitive firm produces where

Correct Answer
verified

If the monopolist's linear demand curve intersects the quantity axis at Q = 30,then the monopolist's marginal revenue will be equal to zero at

Correct Answer
verified

Figure 15-7 -Refer to Figure 15-7.What is the socially efficient price and quantity?

Correct Answer
verified

Which of the following statements is correct for a monopolist? i.The firm maximizes profits by equating marginal revenue with marginal cost. ii.The firm maximizes profits by equating price with marginal cost. iii.Demand equals marginal revenue. iv.Average revenue equals price.

Correct Answer
verified

Exam 15: Monopoly

Because many good substitutes exist for a competitive firm's product,the demand curve that it faces is

Correct AnswerverifiedShow Answer

Even with market power,monopolists cannot achieve any level of profit they desire because they will sell lower quantities at higher prices.

Correct AnswerverifiedShow Answer

Explain how a profit-maximizing monopolist chooses its level of output and the price of its goods.

Correct AnswerverifiedA profit-maximizing monopolist produces ...View AnswerShow Answer

In a monopoly market,the socially efficient quantity of output is typically higher than the profit-maximizing quantity of output for the monopolist.

Correct AnswerverifiedShow Answer

The fundamental source of monopoly power is

Correct AnswerverifiedShow Answer

Movie theatres charge different prices to different groups of people based on the differing marginal costs that exist from group to group.

Correct AnswerverifiedShow Answer

One difference between a perfectly competitive firm and a monopoly is that a perfectly competitive firm produces where

Correct AnswerverifiedShow Answer

If the monopolist's linear demand curve intersects the quantity axis at Q = 30,then the monopolist's marginal revenue will be equal to zero at

Correct AnswerverifiedShow Answer

Figure 15-7 -Refer to Figure 15-7.What is the socially efficient price and quantity?

Correct AnswerverifiedShow Answer

Which of the following statements is correct for a monopolist? i.The firm maximizes profits by equating marginal revenue with marginal cost. ii.The firm maximizes profits by equating price with marginal cost. iii.Demand equals marginal revenue. iv.Average revenue equals price.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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A profit-maximizing monopolist produces ...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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