Question 1

An In the News article titled "Jury Awards $26 Million For Suppressed Technology" reported,that a county superior court jury in Oakland ordered Universal to pay $25.7 million to two California entrepreneurs.The most correct implication of this is that Universal

Accepted Answer

A)  Attempted to suppress R&D.
B)  Is a highly efficient,high-tech industry.
C)  Makes zero economic profits.
D)  Charges lower prices than might be expected in a competitive market.

Question 2

A monopoly is considered more desirable to society than a perfectly competitive firm because a monopoly has the incentive to pursue research and development.

Accepted Answer

A) True 
 B)False

Question 3

The price charged by a profit-maximizing monopolist occurs

Accepted Answer

A)  At the minimum of the long-run average total cost curve.
B)  Where P = MR = MC.
C)  At a price on the demand curve above the intersection where MR = MC.
D)  At a price on the long-run average total cost curve below the point where MR = MC.

Question 4

Economies of scale over the entire range of market output

Accepted Answer

A)  Lead to higher levels of competition.
B)  Become a low barrier to entry,preventing a market from being contestable.
C)  Mean that as the size of a firm increases,its minimum average total costs rise.
D)  Mean that the long-run average total cost curve is downward-sloping.

Question 5

Google holds market power by all of the following strategies except

Accepted Answer

A)  Purchasing rivals.
B)  Low pricing.
C)  Exclusive dealings with advertisers.
D)  Elimination of search results for competitors.

Question 6

Google is currently being investigated by

Accepted Answer

A)  The European Antitrust Authority.
B)  The U.S.Justice Department.
C)  Intel corporation.
D)  The FTC.

Question 7

The primary purpose of antitrust policy in the United States is to

Accepted Answer

A)  Issue patents.
B)  Limit foreign competition.
C)  Encourage competition.
D)  Regulate monopolies.

Question 8

To maintain market power,firms will sometimes purchase their competitors.

Accepted Answer

A) True 
 B)False

Question 9

In Figure 24.1,total profit is represented by the area

Accepted Answer

A)  ABFE.
B)  CDFE.
C)  ABGHE.
D)  ABDC.

Question 10

The Federal Trade Commission was created to study industry structures and behavior and identify anticompetitive practices.

Accepted Answer

A) True 
 B)False

Question 11

For a monopolist,marginal revenue equals

Accepted Answer

A)  Price.
B)  Price times quantity.
C)  The change in quantity divided by the change in total revenue.
D)  The change in total revenue divided by the change in quantity.

Question 12

The shaded area in Figure 24.1 represents

Accepted Answer

A)  Total revenue.
B)  Total cost.
C)  Total profit.
D)  Total loss.

Question 13

Table 24.1 Monopoly Costs and Revenue
  Quantity  Price  Total Cost 1$500$4002$450$6503$400$9504$350$1,3005$300$1,700\begin{array} { | c | c | c | } \hline 	ext { Quantity } & 	ext { Price } & 	ext { Total Cost } \\hline 1 & \$ 500 & \$ 400 \\hline 2 & \$ 450 & \$ 650 \\hline 3 & \$ 400 & \$ 950 \\hline 4 & \$ 350 & \$ 1,300 \\hline 5 & \$ 300 & \$ 1,700 \\hline\end{array} Quantity 12345​ Price $500$450$400$350$300​ Total Cost $400$650$950$1,300$1,700​​  In Table 24.1,according to the profit maximization rule,at the profit-maximizing level of output,marginal revenue is

Accepted Answer

A)  $300.
B)  $200.
C)  $100.
D)  $250.

Question 14

Describe how monopolists use barriers to entry to maintain their pricing power.

Accepted Answer

Monopolists use patents,monopoly franchi...

Question 15

2 and charging P2. D) Producing Q3 and charging P3." class="answers-bank-image d-inline" rel="preload" > Refer to Figure 24.3.Suppose this good could somehow be produced at no cost (that is,the total cost at any level of output was zero) .This single-price monopoly firm would maximize profit by

Accepted Answer

A)  Raising the price as high as possible until the quantity demanded began to decrease.
B)  Producing an infinite amount and selling at the highest price possible.
C)  Producing Q2 and charging P2.
D)  Producing Q3 and charging P3.

Question 16

When compared to a competitive market,monopolists tend to charge a higher price and produce a greater level of output.

Accepted Answer

A) True 
 B)False

Question 17

The In the News article "A Sirius Mistake? FCC Approves XM-Sirius Merger" discusses the proposed merger of two satellite radio companies.Antitrust officials will examine the merger in order to

Accepted Answer

A)  Prevent the abuse of market power.
B)  Prevent economies of scale.
C)  Protect the government from frivolous lawsuits.
D)  Increase the profitability of monopolies.

Question 18

In the long run,a monopolist can continue to earn economic profits.

Accepted Answer

A) True 
 B)False

Question 19

The marginal revenue curve is below the demand curve

Accepted Answer

A)  If a firm must lower its price to sell additional output.
B)  For a competitive firm.
C)  When a market is characterized by economies of scale.
D)  For all firms.

Question 20

In Figure 24.2,total cost at the profit-maximizing rate of output is

Accepted Answer

A)  $16.00.
B)  $18.80.
C)  $22.00.
D)  $25.60.

Exam 24: Monopoly

The primary purpose of antitrust policy in the United States is to

Correct Answer
verified

In Figure 24.2,total cost at the profit-maximizing rate of output is

Correct Answer
verified

Google holds market power by all of the following strategies except

Correct Answer
verified

Refer to Figure 24.3.Suppose this good could somehow be produced at no cost (that is,the total cost at any level of output was zero) .This single-price monopoly firm would maximize profit by

Correct Answer
verified

Economies of scale over the entire range of market output

Correct Answer
verified

Describe how monopolists use barriers to entry to maintain their pricing power.

Correct Answer
verified
Monopolists use patents,monopoly franchi...
View Answer

Correct Answer
verified

The price charged by a profit-maximizing monopolist occurs

Correct Answer
verified

An In the News article titled "Jury Awards $26 Million For Suppressed Technology" reported,that a county superior court jury in Oakland ordered Universal to pay $25.7 million to two California entrepreneurs.The most correct implication of this is that Universal

Correct Answer
verified

To maintain market power,firms will sometimes purchase their competitors.

Correct Answer
verified

Google is currently being investigated by

Correct Answer
verified

The marginal revenue curve is below the demand curve

Correct Answer
verified

The shaded area in Figure 24.1 represents

Correct Answer
verified

For a monopolist,marginal revenue equals

Correct Answer
verified

The Federal Trade Commission was created to study industry structures and behavior and identify anticompetitive practices.

Correct Answer
verified

The In the News article "A Sirius Mistake? FCC Approves XM-Sirius Merger" discusses the proposed merger of two satellite radio companies.Antitrust officials will examine the merger in order to

Correct Answer
verified

When compared to a competitive market,monopolists tend to charge a higher price and produce a greater level of output.

Correct Answer
verified

In the long run,a monopolist can continue to earn economic profits.

Correct Answer
verified

In Figure 24.1,total profit is represented by the area

Correct Answer
verified

A monopoly is considered more desirable to society than a perfectly competitive firm because a monopoly has the incentive to pursue research and development.

Correct Answer
verified

Exam 24: Monopoly

The primary purpose of antitrust policy in the United States is to

Correct AnswerverifiedShow Answer

In Figure 24.2,total cost at the profit-maximizing rate of output is

Correct AnswerverifiedShow Answer

Google holds market power by all of the following strategies except

Correct AnswerverifiedShow Answer

Refer to Figure 24.3.Suppose this good could somehow be produced at no cost (that is,the total cost at any level of output was zero) .This single-price monopoly firm would maximize profit by

Correct AnswerverifiedShow Answer

Economies of scale over the entire range of market output

Correct AnswerverifiedShow Answer

Describe how monopolists use barriers to entry to maintain their pricing power.

Correct AnswerverifiedMonopolists use patents,monopoly franchi...View AnswerShow Answer

Correct AnswerverifiedShow Answer

The price charged by a profit-maximizing monopolist occurs

Correct AnswerverifiedShow Answer

An In the News article titled "Jury Awards $26 Million For Suppressed Technology" reported,that a county superior court jury in Oakland ordered Universal to pay $25.7 million to two California entrepreneurs.The most correct implication of this is that Universal

Correct AnswerverifiedShow Answer

To maintain market power,firms will sometimes purchase their competitors.

Correct AnswerverifiedShow Answer

Google is currently being investigated by

Correct AnswerverifiedShow Answer

The marginal revenue curve is below the demand curve

Correct AnswerverifiedShow Answer

The shaded area in Figure 24.1 represents

Correct AnswerverifiedShow Answer

For a monopolist,marginal revenue equals

Correct AnswerverifiedShow Answer

The Federal Trade Commission was created to study industry structures and behavior and identify anticompetitive practices.

Correct AnswerverifiedShow Answer

The In the News article "A Sirius Mistake? FCC Approves XM-Sirius Merger" discusses the proposed merger of two satellite radio companies.Antitrust officials will examine the merger in order to

Correct AnswerverifiedShow Answer

When compared to a competitive market,monopolists tend to charge a higher price and produce a greater level of output.

Correct AnswerverifiedShow Answer

In the long run,a monopolist can continue to earn economic profits.

Correct AnswerverifiedShow Answer

In Figure 24.1,total profit is represented by the area

Correct AnswerverifiedShow Answer

A monopoly is considered more desirable to society than a perfectly competitive firm because a monopoly has the incentive to pursue research and development.

Correct AnswerverifiedShow Answer

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Monopolists use patents,monopoly franchi...
View Answer

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