Question 1

The legislation passed by Congress in 1914 to strengthen the government's powers and authorize private lawsuits was the

Accepted Answer

A)   Morgan Act.
B)   Sherman Act.
C)   Clayton Act.
D)   14th Amendment.E) A) and B)
F) C) and D)

Question 2

The laws governing patents and copyrights

Accepted Answer

A)   promote monopolies.
B)   are intended to serve private interests, not the public's interest.
C)   have costs but not benefits.
D)   eliminate the need for firms to engage in research and development.E) A) and D)
F) A) and B)

Question 3

"Monopolists do not worry about efficient production and minimizing costs since they can just pass along any increase in costs to their consumers." This statement is

Accepted Answer

A)   false; price increases will mean fewer sales, which may lower profits.
B)   true; this is the primary reason why economists believe that monopolies result in economic inefficiency.
C)   false; the monopolist is a price taker.
D)   true; consumers in a monopoly market have no substitutes to turn to when the monopolist raises prices.E) A) and D)
F) B) and D)

Question 4

Table 15-22
 
-Refer to Table 15-22. The average revenue of the 50th unit of output is

Accepted Answer

The answer of Table 15-22
 
-Refer to Table 15-22. The...

Question 5

Figure 15-19 
-Refer to Figure 15-19. If there are no fixed costs of production, monopoly profit with perfect price discrimination equals

Accepted Answer

A)   $1.
B)   $1,562.5.
C)   $3,125.
D)   $6,250.E) All of the above
F) A) and C)

Question 6

Table 15-8
The following table provides information on the price, quantity, and average total cost for a monopoly.
 
-Refer to Table 15-8. What is the additional cost to the firm when the monopolist lowers the price from $18 to $12?

Accepted Answer

A)   The firm saves $15.
B)   $15
C)   $30
D)   $40E) A) and B)
F) C) and D)

Question 7

Most firms have

Accepted Answer

A)   no monopoly pricing power.
B)   some monopoly pricing power.
C)   absolute monopoly pricing power.
D)   the ability to earn monopoly profits.E) A) and C)
F) All of the above

Question 8

Table 15-21
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 15-21. If the monopolist can engage in perfect price discrimination, what is the marginal revenue from selling the 5th tie?

Accepted Answer

A)   $80
B)   $100
C)   $110
D)   $120E) B) and C)
F) A) and D)

Question 9

Figure 15-3 
-Refer to Figure 15-3. Which of the following statements is correct?

Accepted Answer

A)   Panel B represents the typical demand curve for a perfectly competitive firm.
B)   Panel A represents the typical demand curve for a monopoly.
C)   Panel A represents the typical demand curve for a perfectly competitive industry.
D)   All of the above are correct.E) A) and B)
F) All of the above

Question 10

For a firm to price discriminate,

Accepted Answer

A)   it must be a natural monopoly.
B)   it must be regulated by the government.
C)   it must have some market power.
D)   consumers must tell the firm what they are willing to pay for the product.E) B) and C)
F) None of the above

Question 11

A monopolist can sell 300 units of output for $45 per unit. Alternatively, it can sell 301 units of output for $44.60 per unit. The marginal revenue of the 301st unit of output is

Accepted Answer

A)   -$120.00.
B)   -$75.40.
C)   -$0.40.
D)   $75.40.E) B) and D)
F) B) and C)

Question 12

Table 15-1
 
-Refer to Table 15-1. Assume this monopolist's marginal cost is constant at $12. What quantity of output Q)  will it produce and what price P)  will it charge?

Accepted Answer

A)   Q = 4, P = $29
B)   Q = 4, P = $26
C)   Q = 5, P = $23
D)   Q = 7, P = $17E) A) and C)
F) None of the above

Question 13

A firm cannot price discriminate if it

Accepted Answer

A)   has perfect information about consumer demand.
B)   operates in a competitive market.
C)   faces a downward-sloping demand curve.
D)   is regulated by the government.E) None of the above
F) A) and C)

Question 14

A monopoly creates a deadweight loss to society because it earns both short-run and long-run positive economic profits.

Accepted Answer

A) True 
 B)False

Question 15

Like competitive firms, monopolies choose to produce a quantity in which marginal revenue equals marginal cost.

Accepted Answer

A) True 
 B)False

Question 16

For a monopolist, when the output effect is greater than the price effect, marginal revenue is

Accepted Answer

A)   positive.
B)   negative.
C)   zero.
D)   maximized.E) A) and C)
F) None of the above

Question 17

Table 15-22
 
-Refer to Table 15-22. The marginal revenue becomes negative with the production of which unit of output?

Accepted Answer

The answer of Table 15-22
 
-Refer to Table 15-22. The...

Question 18

Figure 15-19 
-Refer to Figure 15-19. If the monopoly firm is not allowed to price discriminate, then consumer surplus amounts to

Accepted Answer

A)   $0.
B)   $1,562.50.
C)   $3,125.
D)   $6,250.E) All of the above
F) B) and C)

Question 19

Microsoft's government­granted exclusive right to make and sell the Windows operating system is called a

Accepted Answer

The answer of Microsoft's government­granted exclusive right to make and...

Question 20

For a monopolist, marginal revenue is

Accepted Answer

A)   equal to price, as it is for a perfectly competitive firm.
B)   less than price, as it is for a perfectly competitive firm.
C)   equal to price, whereas marginal revenue is less than price for a perfectly competitive firm.
D)   less than price, whereas marginal revenue is equal to price for a perfectly competitive firm.E) A) and C)
F) All of the above

Exam 14: Monopoly

The laws governing patents and copyrights

Correct Answer
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A monopolist can sell 300 units of output for $45 per unit. Alternatively, it can sell 301 units of output for $44.60 per unit. The marginal revenue of the 301st unit of output is

Correct Answer
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Figure 15-19 -Refer to Figure 15-19. If the monopoly firm is not allowed to price discriminate, then consumer surplus amounts to

Correct Answer
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Table 15-22 -Refer to Table 15-22. The average revenue of the 50th unit of output is

Correct Answer
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Table 15-22 -Refer to Table 15-22. The marginal revenue becomes negative with the production of which unit of output?

Correct Answer
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Like competitive firms, monopolies choose to produce a quantity in which marginal revenue equals marginal cost.

Correct Answer
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Correct Answer
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For a firm to price discriminate,

Correct Answer
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Most firms have

Correct Answer
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A firm cannot price discriminate if it

Correct Answer
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For a monopolist, when the output effect is greater than the price effect, marginal revenue is

Correct Answer
verified

"Monopolists do not worry about efficient production and minimizing costs since they can just pass along any increase in costs to their consumers." This statement is

Correct Answer
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Table 15-8 The following table provides information on the price, quantity, and average total cost for a monopoly. -Refer to Table 15-8. What is the additional cost to the firm when the monopolist lowers the price from $18 to $12?

Correct Answer
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The legislation passed by Congress in 1914 to strengthen the government's powers and authorize private lawsuits was the

Correct Answer
verified

Table 15-1 -Refer to Table 15-1. Assume this monopolist's marginal cost is constant at $12. What quantity of output Q) will it produce and what price P) will it charge?

Correct Answer
verified

Microsoft's governmentgranted exclusive right to make and sell the Windows operating system is called a

Correct Answer
verified

For a monopolist, marginal revenue is

Correct Answer
verified

A monopoly creates a deadweight loss to society because it earns both short-run and long-run positive economic profits.

Correct Answer
verified

Figure 15-19 -Refer to Figure 15-19. If there are no fixed costs of production, monopoly profit with perfect price discrimination equals

Correct Answer
verified

Figure 15-3 -Refer to Figure 15-3. Which of the following statements is correct?

Correct Answer
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Exam 14: Monopoly

The laws governing patents and copyrights

Correct AnswerverifiedShow Answer

A monopolist can sell 300 units of output for $45 per unit. Alternatively, it can sell 301 units of output for $44.60 per unit. The marginal revenue of the 301st unit of output is

Correct AnswerverifiedShow Answer

Figure 15-19 -Refer to Figure 15-19. If the monopoly firm is not allowed to price discriminate, then consumer surplus amounts to

Correct AnswerverifiedShow Answer

Table 15-22 -Refer to Table 15-22. The average revenue of the 50th unit of output is

Correct AnswerverifiedShow Answer

Table 15-22 -Refer to Table 15-22. The marginal revenue becomes negative with the production of which unit of output?

Correct AnswerverifiedShow Answer

Like competitive firms, monopolies choose to produce a quantity in which marginal revenue equals marginal cost.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

For a firm to price discriminate,

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Most firms have

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A firm cannot price discriminate if it

Correct AnswerverifiedShow Answer

For a monopolist, when the output effect is greater than the price effect, marginal revenue is

Correct AnswerverifiedShow Answer

"Monopolists do not worry about efficient production and minimizing costs since they can just pass along any increase in costs to their consumers." This statement is

Correct AnswerverifiedShow Answer

Table 15-8 The following table provides information on the price, quantity, and average total cost for a monopoly. -Refer to Table 15-8. What is the additional cost to the firm when the monopolist lowers the price from $18 to $12?

Correct AnswerverifiedShow Answer

The legislation passed by Congress in 1914 to strengthen the government's powers and authorize private lawsuits was the

Correct AnswerverifiedShow Answer

Table 15-1 -Refer to Table 15-1. Assume this monopolist's marginal cost is constant at $12. What quantity of output Q) will it produce and what price P) will it charge?

Correct AnswerverifiedShow Answer

Microsoft's government­granted exclusive right to make and sell the Windows operating system is called a

Correct AnswerverifiedShow Answer

For a monopolist, marginal revenue is

Correct AnswerverifiedShow Answer

A monopoly creates a deadweight loss to society because it earns both short-run and long-run positive economic profits.

Correct AnswerverifiedShow Answer

Figure 15-19 -Refer to Figure 15-19. If there are no fixed costs of production, monopoly profit with perfect price discrimination equals

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Figure 15-3 -Refer to Figure 15-3. Which of the following statements is correct?

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Microsoft's governmentgranted exclusive right to make and sell the Windows operating system is called a

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