Question 1

Define price discrimination.What three conditions must exist before a firm can use it successfully?

Accepted Answer

Price discrimination occurs when a selle...

Question 2

Which of the following is true at the level of output which maximizes profits for a perfectly price-discriminating monopolist?

Accepted Answer

A)   P > MC.
B)   P 
C)   P 
D)   a and b
E)   none of the aboveF) A) and B)
G) A) and C)

Question 3

Exhibit 24-10
 2 B)  Q1 C)  Q3 D)  Q4 E)  none of the above" class="answers-bank-image d-inline" rel="preload" >
-Refer to Exhibit 24-10.The profit-maximizing single-price monopolist will produce which quantity of output?

Accepted Answer

A)   Q2
B)   Q1
C)   Q3
D)   Q4
E)   none of the aboveF) A) and B)
G) C) and D)

Question 4

When the monopoly firm sells two units of its product,it earns total revenue of $260 and it incurs a total cost of $210.If its marginal revenue for the second unit was $110,what was the marginal revenue of the first unit?

Accepted Answer

A)   $100
B)   $150
C)   $133
D)   $220
E)   There is not enough information to answer the question.F) All of the above
G) B) and C)

Question 5

Suppose a monopolist practices perfect price discrimination.Its marginal revenue curve

Accepted Answer

A)   will lie below the demand curve.
B)   will lie above the demand curve.
C)   will coincide with the demand curve.
D)   has no definite relationship with the demand curve.E) B) and C)
F) None of the above

Question 6

The perfectly price-discriminating monopolist achieves resource allocative efficiency,while the single-price monopolist does not.

Accepted Answer

A) True 
 B)False

Question 7

Rent-seeking is said to be socially wasteful because

Accepted Answer

A)   the rent seekers compete too fiercely with each other.
B)   resources that are used to seek rents don't end up helping anyone in society.
C)   the rent seekers usually end up spending too much to get what they want.
D)   resources that are used to seek rents can't be used to produce goods and services.
E)   none of the aboveF) A) and E)
G) C) and E)

Question 8

When a monopolist can perfectly price discriminate,it follows that

Accepted Answer

A)   price equals marginal revenue.
B)   price equals marginal cost at the quantity of output it chooses to produce.
C)   the monopolist is resource-allocative efficient.
D)   b and c
E)   a, b, and cF) B) and D)
G) A) and B)

Question 9

Rent seeking occurs when the seller charges

Accepted Answer

A)   different prices for the product it sells, and the price differences do not reflect cost differences.
B)   the highest price each consumer would be willing to pay for the product rather than go without it.
C)   a uniform price per unit for one specific quantity, a lower price for an additional quantity, and so on.
D)   a and c
E)   none of the aboveF) B) and E)
G) A) and E)

Question 10

If a firm has no variable costs,the profit-maximizing price is also the revenue-maximizing price.

Accepted Answer

A) True 
 B)False

Question 11

Exhibit 24-9
 
-Refer to Exhibit 24-9.A single-price monopolist earns a total profit of __________ when it produces the profit maximizing level of output.

Accepted Answer

A)   $120
B)   $110
C)   $180
D)   $80
E)   $49F) C) and D)
G) A) and D)

Exam 24: Monopoly

Which of the following is true at the level of output which maximizes profits for a perfectly price-discriminating monopolist?

Correct Answer
verified

Exhibit 24-9 -Refer to Exhibit 24-9.A single-price monopolist earns a total profit of __________ when it produces the profit maximizing level of output.

Correct Answer
verified

Rent-seeking is said to be socially wasteful because

Correct Answer
verified

Exhibit 24-10 -Refer to Exhibit 24-10.The profit-maximizing single-price monopolist will produce which quantity of output?

Correct Answer
verified

When a monopolist can perfectly price discriminate,it follows that

Correct Answer
verified

Rent seeking occurs when the seller charges

Correct Answer
verified

When the monopoly firm sells two units of its product,it earns total revenue of $260 and it incurs a total cost of $210.If its marginal revenue for the second unit was $110,what was the marginal revenue of the first unit?

Correct Answer
verified

Suppose a monopolist practices perfect price discrimination.Its marginal revenue curve

Correct Answer
verified

Define price discrimination.What three conditions must exist before a firm can use it successfully?

Correct Answer
verified
Price discrimination occurs when a selle...
View Answer

The perfectly price-discriminating monopolist achieves resource allocative efficiency,while the single-price monopolist does not.

Correct Answer
verified

If a firm has no variable costs,the profit-maximizing price is also the revenue-maximizing price.

Correct Answer
verified

Exam 24: Monopoly

Which of the following is true at the level of output which maximizes profits for a perfectly price-discriminating monopolist?

Correct AnswerverifiedShow Answer

Exhibit 24-9 -Refer to Exhibit 24-9.A single-price monopolist earns a total profit of __________ when it produces the profit maximizing level of output.

Correct AnswerverifiedShow Answer

Rent-seeking is said to be socially wasteful because

Correct AnswerverifiedShow Answer

Exhibit 24-10 -Refer to Exhibit 24-10.The profit-maximizing single-price monopolist will produce which quantity of output?

Correct AnswerverifiedShow Answer

When a monopolist can perfectly price discriminate,it follows that

Correct AnswerverifiedShow Answer

Rent seeking occurs when the seller charges

Correct AnswerverifiedShow Answer

When the monopoly firm sells two units of its product,it earns total revenue of $260 and it incurs a total cost of $210.If its marginal revenue for the second unit was $110,what was the marginal revenue of the first unit?

Correct AnswerverifiedShow Answer

Suppose a monopolist practices perfect price discrimination.Its marginal revenue curve

Correct AnswerverifiedShow Answer

Define price discrimination.What three conditions must exist before a firm can use it successfully?

Correct AnswerverifiedPrice discrimination occurs when a selle...View AnswerShow Answer

The perfectly price-discriminating monopolist achieves resource allocative efficiency,while the single-price monopolist does not.

Correct AnswerverifiedShow Answer

If a firm has no variable costs,the profit-maximizing price is also the revenue-maximizing price.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified
Price discrimination occurs when a selle...
View Answer

Correct Answer
verified

Correct Answer
verified