Question 1

Figure 15-7 
-Refer to Figure 15-7.What is the area of deadweight loss?

Accepted Answer

A)   the rectangle (F-
D)  xA
B)   the triangle 1/2[(F-
D)  x(B-
A)  ]
C)   the triangle 1/2[(F-G) x(B-
A)  ]
D)   the rectangle (F-
D)  xA plus the triangle 1/2[(F-
D)  x(B-
A)  ]E) A) and C)
F) C) and D)

Question 2

Table 15-7
Sally owns the only shoe store in town.She has the following cost and revenue information.
 
-Refer to Table 15-7.Sally will maximize her profits by selling

Accepted Answer

A)   3 pairs of shoes.
B)   4 pairs of shoes.
C)   6 pairs of shoes.
D)   7 pairs of shoes.E) All of the above
F) C) and D)

Question 3

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 4

Figure 15-1 
-Refer to Figure 15-1.Considering the relationship between average total cost and marginal cost,the marginal cost curve for this firm must

Accepted Answer

A)   lie entirely above the average total cost curve.
B)   lie entirely below the average total cost curve.
C)   be U-shaped.
D)   be horizontal.E) None of the above
F) B) and C)

Question 5

A perfectly competitive market

Accepted Answer

A)   may not be in the best interests of society,whereas a monopoly market promotes general economic well-being
B)   promotes general economic well-being,whereas a monopoly market may not be in the best interests of society.
C)   and a monopoly market are equally likely to promote general economic well-being.
D)   is less likely to promote general economic well-being than a monopoly market.E) B) and D)
F) A) and C)

Question 6

Figure 15-6 
-Refer to Figure 15-6.A profit-maximizing monopolist would earn total revenues of

Accepted Answer

A)   $81.
B)   $144.
C)   $225.
D)   $240.E) None of the above
F) A) and D)

Question 7

Table 15-18
Tommy's Tie Company,a monopolist,has the following cost and revenue information.Assume that Tommy's is able to engage in perfect price discrimination.
 
-Refer to Table 15-18.If the monopolist can engage in perfect price discrimination,what is total profit at the profit-maximizing quantity?

Accepted Answer

A)   $325
B)   $435
C)   $565
D)   $1000E) C) and D)
F) All of the above

Question 8

Goods that do not have close substitutes have downward-sloping demand curves.

Accepted Answer

A) True 
 B)False

Question 9

Table 15-4
A monopolist faces the following demand curve:
 
-Refer to Table 15-4.If the monopolist produces 10 units,what is its average revenue?

Accepted Answer

A)   $100
B)   $15
C)   $10
D)   $1E) A) and B)
F) A) and C)

Question 10

A monopolist will choose to increase output when

Accepted Answer

A)   market price increases.
B)   at all levels of output,marginal cost increases.
C)   at the present level of output,marginal revenue exceeds marginal cost.
D)   the demand curve shifts to the left.E) C) and D)
F) None of the above

Question 11

An industry is a natural monopoly when (i) 
The government assists the firm in maintaining the monopoly.
(ii) 
A single firm owns a key resource.
(iii) 
A single firm can supply a good or service to an entire market at a smaller cost than could two or more firms.

Accepted Answer

A)   (ii) only
B)   (iii) only
C)   (i) and (ii) only
D)   (ii) and (iii) onlyE) None of the above
F) A) and B)

Question 12

A benefit of a monopoly is

Accepted Answer

A)   efficient production.
B)   decreasing long-run marginal costs.
C)   profit that can be invested in research and development.
D)   All of the above are correct.E) A) and C)
F) All of the above

Question 13

Which of the following is an example of public ownership of a monopoly?

Accepted Answer

A)   DeBeers
B)   Microsoft
C)   U.S.Postal Service
D)   AT&TE) C) and D)
F) A) and D)

Question 14

Table 15-3
Consider the following demand and cost information for a monopoly.
 
-Refer to Table 15-3.The marginal revenue of the 2nd unit is

Accepted Answer

A)   $10.
B)   $15.
C)   $20.
D)   $25.E) None of the above
F) B) and C)

Question 15

Table 15-7
Sally owns the only shoe store in town.She has the following cost and revenue information.
 
-Refer to Table 15-7.What is total profit at the profit-maximizing quantity?

Accepted Answer

A)   $100
B)   $245
C)   $265
D)   $395E) A) and C)
F) C) and D)

Question 16

Figure 15-2 
-Refer to Figure 15-2.If the monopolist uses perfect price discrimination,how much profit does the firm earn?

Accepted Answer

The answer of Figure 15-2 
-Refer to Figure 15-2.If the...

Question 17

In order for a firm to maximize profits through price discrimination,the firm must have some market power and be able to prevent arbitrage.

Accepted Answer

A) True 
 B)False

Question 18

Figure 15-4 
-Refer to Figure 15-4.A profit-maximizing monopoly's total cost is equal to

Accepted Answer

A)   P4 x Q3.
B)   P2 x Q3.
C)   P1 x Q3.
D)   (P4-P1) x Q3.E) A) and B)
F) B) and C)

Question 19

For a monopoly,the socially efficient level of output occurs where

Accepted Answer

A)   marginal revenue equals marginal cost.
B)   average revenue equals marginal cost.
C)   marginal revenue equals average total cost.
D)   average revenue equals average total cost.E) All of the above
F) A) and B)

Question 20

Figure 15-10 
-Refer to Figure 15-10.Which area represents the deadweight loss from monopoly?

Accepted Answer

A)   J
B)   H
C)   A+B+C+D+F+I+J+H
D)   J+HE) A) and B)
F) All of the above

Exam 15: Monopoly

Which of the following is an example of public ownership of a monopoly?

Correct Answer
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Figure 15-6 -Refer to Figure 15-6.A profit-maximizing monopolist would earn total revenues of

Correct Answer
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Table 15-3 Consider the following demand and cost information for a monopoly. -Refer to Table 15-3.The marginal revenue of the 2nd unit is

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

Correct Answer
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A profit-maximizing monopolist produces ...
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Figure 15-10 -Refer to Figure 15-10.Which area represents the deadweight loss from monopoly?

Correct Answer
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A benefit of a monopoly is

Correct Answer
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Figure 15-1 -Refer to Figure 15-1.Considering the relationship between average total cost and marginal cost,the marginal cost curve for this firm must

Correct Answer
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Table 15-7 Sally owns the only shoe store in town.She has the following cost and revenue information. -Refer to Table 15-7.Sally will maximize her profits by selling

Correct Answer
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A perfectly competitive market

Correct Answer
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Correct Answer
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An industry is a natural monopoly when (i) The government assists the firm in maintaining the monopoly. (ii) A single firm owns a key resource. (iii) A single firm can supply a good or service to an entire market at a smaller cost than could two or more firms.

Correct Answer
verified

In order for a firm to maximize profits through price discrimination,the firm must have some market power and be able to prevent arbitrage.

Correct Answer
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Goods that do not have close substitutes have downward-sloping demand curves.

Correct Answer
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Figure 15-2 -Refer to Figure 15-2.If the monopolist uses perfect price discrimination,how much profit does the firm earn?

Correct Answer
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Figure 15-7 -Refer to Figure 15-7.What is the area of deadweight loss?

Correct Answer
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Table 15-4 A monopolist faces the following demand curve: -Refer to Table 15-4.If the monopolist produces 10 units,what is its average revenue?

Correct Answer
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A monopolist will choose to increase output when

Correct Answer
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For a monopoly,the socially efficient level of output occurs where

Correct Answer
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Figure 15-4 -Refer to Figure 15-4.A profit-maximizing monopoly's total cost is equal to

Correct Answer
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Table 15-7 Sally owns the only shoe store in town.She has the following cost and revenue information. -Refer to Table 15-7.What is total profit at the profit-maximizing quantity?

Correct Answer
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Exam 15: Monopoly

Which of the following is an example of public ownership of a monopoly?

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Figure 15-6 -Refer to Figure 15-6.A profit-maximizing monopolist would earn total revenues of

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Table 15-3 Consider the following demand and cost information for a monopoly. -Refer to Table 15-3.The marginal revenue of the 2nd unit is

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

Figure 15-10 -Refer to Figure 15-10.Which area represents the deadweight loss from monopoly?

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A benefit of a monopoly is

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Figure 15-1 -Refer to Figure 15-1.Considering the relationship between average total cost and marginal cost,the marginal cost curve for this firm must

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Table 15-7 Sally owns the only shoe store in town.She has the following cost and revenue information. -Refer to Table 15-7.Sally will maximize her profits by selling

Correct AnswerverifiedShow Answer

A perfectly competitive market

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Correct AnswerverifiedShow Answer

An industry is a natural monopoly when (i) The government assists the firm in maintaining the monopoly. (ii) A single firm owns a key resource. (iii) A single firm can supply a good or service to an entire market at a smaller cost than could two or more firms.

Correct AnswerverifiedShow Answer

In order for a firm to maximize profits through price discrimination,the firm must have some market power and be able to prevent arbitrage.

Correct AnswerverifiedShow Answer

Goods that do not have close substitutes have downward-sloping demand curves.

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Figure 15-2 -Refer to Figure 15-2.If the monopolist uses perfect price discrimination,how much profit does the firm earn?

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Figure 15-7 -Refer to Figure 15-7.What is the area of deadweight loss?

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Table 15-4 A monopolist faces the following demand curve: -Refer to Table 15-4.If the monopolist produces 10 units,what is its average revenue?

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A monopolist will choose to increase output when

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For a monopoly,the socially efficient level of output occurs where

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Figure 15-4 -Refer to Figure 15-4.A profit-maximizing monopoly's total cost is equal to

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Table 15-7 Sally owns the only shoe store in town.She has the following cost and revenue information. -Refer to Table 15-7.What is total profit at the profit-maximizing quantity?

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A profit-maximizing monopolist produces ...
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