Question 1

Exhibit 23-6
 0 the price it charges for the last unit of X it sells. The marginal cost of the last unit A) is less than P0. B) equals P0. C) is greater than P0. D) could be any of the above, depending on the shape of the marginal cost curve." class="answers-bank-image d-inline" rel="preload" >
-Refer to Exhibit 23-6. Let C be the demand curve facing a perfectly price-discriminating monopolist and P0 the price it charges for the last unit of X it sells. The marginal cost of the last unit

Accepted Answer

A)  is less than P0.
B)  equals P0.
C)  is greater than P0.
D)  could be any of the above, depending on the shape of the marginal cost curve.

Question 2

Exhibit 23-7
 
-Refer to Exhibit 23-7. The maximum profits earned by a single-price monopolist producing good X are

Accepted Answer

A)  $9,000.
B)  $4,500.
C)  $2,250.
D)  $1,125.

Question 3

Exhibit 23-8
  ​
​
-Refer to Exhibit 23-8. The marginal cost of the last unit produced at the profit-maximizing output level equals

Accepted Answer

A)  $20.
B)  $50.
C)  $40.
D)  $70.
E)  $54.

Question 4

Exhibit 23-7
 
-Refer to Exhibit 23-7. The total revenue collected by a profit-maximizing single-price monopolist is

Accepted Answer

A)  $4,500.
B)  $2,250.
C)  $6,750.
D)  $9,000.

Question 5

If the monopoly firm's marginal cost curve is either horizontal or upward sloping, it follows that its marginal revenue curve will cut its marginal cost curve at a __________ level of output than where its demand curve cuts its marginal cost curve. It also follows that if the firm were to produce the quantity of output consistent with where its demand curve cut its marginal cost curve, the firm would be __________.

Accepted Answer

A)  lower; earning profits
B)  lower; resource-allocative efficient
C)  higher; productive efficient
D)  lower; minimizing costs
E)  none of the above

Question 6

Exhibit 23-3
 1. B) q2. C) q3. D) q4." class="answers-bank-image d-inline" rel="preload" >
-Refer to Exhibit 23-3. The level of output the profit-maximizing perfectly price-discriminating monopolist produces is

Accepted Answer

A)  q1.
B)  q2.
C)  q3.
D)  q4.

Question 7

If a monopolist practices perfect price discrimination, then it will have

Accepted Answer

A)  a greater total revenue and sell a greater output than if it were not practicing price discrimination.
B)  a smaller total revenue and sell a smaller output than if it were not practicing price discrimination.
C)  the same total revenue but sell a larger output than if it were not practicing price discrimination.
D)  the same total revenue but sell a smaller output than if it were not practicing price discrimination.

Question 8

Describe the circumstance under which profit maximization is the same as revenue maximization. Use a hypothetical numerical example to help explain why this is so.

Accepted Answer

In the unlikely event that a firm has no...

Question 9

A seller that has the ability (to some degree)  to control the price of the product it sells is called a price

Accepted Answer

A)  taker.
B)  searcher.
C)  breaker.
D)  twister.

Question 10

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 c

Question 11

Suppose that your school pays one rate for the first one million kilowatts of electricity and a lower rate for any power it uses over one million kilowatts. What economic concept is occurring here?

Accepted Answer

A)  perfect price discrimination
B)  second-degree price discrimination
C)  third-degree price discrimination
D)  economies of scale

Question 12

Exhibit 23-10
 
-Refer to Exhibit 23-10. The profit-maximizing single-price monopolist earns profits equal to what area?

Accepted Answer

A)  ABGH
B)  HGCD
C)  DCE
D)  ABCD
E)  GFC

Question 13

If a perfectly competitive firm and a single-price monopolist face the same demand and cost curves, then the competitive firm will produce a

Accepted Answer

A)  greater output and charge a lower price than the monopolist.
B)  greater output but charge the same price as the monopolist.
C)  greater output and charge a higher price than the monopolist.
D)  smaller output and charge a lower price than the monopolist.
E)  smaller output and charge a higher price than the monopolist.

Question 14

Exhibit 23-2
 2CQ0. B) area 0P3FQ0. C) area 0P1BQ0. D) distance from Q0 to D. E) none of the above" class="answers-bank-image d-inline" rel="preload" >
-Refer to Exhibit 23-2. Total cost at the profit-maximizing quantity of output is the

Accepted Answer

A)  area 0P2CQ0.
B)  area 0P3FQ0.
C)  area 0P1BQ0.
D)  distance from Q0 to D.
E)  none of the above

Question 15

Competition is legally prohibited when barriers to entry take the form of

Accepted Answer

A)  public franchises.
B)  economies of scale.
C)  exclusive ownership of a resource.
D)  all of the above
E)  none of the above

Question 16

A monopolist can sell 26,000 units at a price of $30 per unit. Lowering price by $1 raises the quantity demanded by 1,000 units. What is the change in total revenue resulting from this price change?

Accepted Answer

A)  $1,500
B)  $3,000
C)  $5,500
D)  -$2,800

Question 17

Suppose the local pharmacy charges lower prices to senior citizens than it charges to younger customers. The pharmacy is practicing

Accepted Answer

A)  perfect price discrimination.
B)  second-degree price discrimination.
C)  arbitrage.
D)  third-degree price discrimination.
E)  non-cost discrimination.

Question 18

Exhibit 23-1
 1BQ1 B) area BCA C) area P1P2CB D) area P2CAP1 E) none of the above" class="answers-bank-image d-inline" rel="preload" >
-Refer to Exhibit 23-1. If the product is produced under single-price monopoly, what do profits equal at the profit maximizing level of output?

Accepted Answer

A)  area 0P1BQ1
B)  area BCA
C)  area P1P2CB
D)  area P2CAP1
E)  none of the above

Question 19

Exhibit 23-7
 
-Refer to Exhibit 23-7. Let D be the demand curve facing a perfectly price-discriminating monopolist. The marginal revenue it receives from selling the 150th unit of good X sold equals

Accepted Answer

A)  $60.
B)  $45.
C)  $30.
D)  $0, since it sells less than 150 units.

Question 20

Buying low and selling high is often referred to as

Accepted Answer

A)  price discrimination.
B)  rent-seeking.
C)  arbitrage.
D)  scarcity.
E)  capitalization.

Exam 23: Monopoly

Exhibit 23-1 -Refer to Exhibit 23-1. If the product is produced under single-price monopoly, what do profits equal at the profit maximizing level of output?

Correct Answer
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Exhibit 23-7 -Refer to Exhibit 23-7. The total revenue collected by a profit-maximizing single-price monopolist is

Correct Answer
verified

Correct Answer
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Exhibit 23-2 -Refer to Exhibit 23-2. Total cost at the profit-maximizing quantity of output is the

Correct Answer
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A monopolist can sell 26,000 units at a price of $30 per unit. Lowering price by $1 raises the quantity demanded by 1,000 units. What is the change in total revenue resulting from this price change?

Correct Answer
verified

Exhibit 23-8 -Refer to Exhibit 23-8. The marginal cost of the last unit produced at the profit-maximizing output level equals

Correct Answer
verified

Describe the circumstance under which profit maximization is the same as revenue maximization. Use a hypothetical numerical example to help explain why this is so.

Correct Answer
verified
In the unlikely event that a firm has no...
View Answer

If a monopolist practices perfect price discrimination, then it will have

Correct Answer
verified

Buying low and selling high is often referred to as

Correct Answer
verified

A seller that has the ability (to some degree) to control the price of the product it sells is called a price

Correct Answer
verified

Exhibit 23-7 -Refer to Exhibit 23-7. The maximum profits earned by a single-price monopolist producing good X are

Correct Answer
verified

Suppose that your school pays one rate for the first one million kilowatts of electricity and a lower rate for any power it uses over one million kilowatts. What economic concept is occurring here?

Correct Answer
verified

When a monopolist can perfectly price discriminate, it follows that

Correct Answer
verified

Exhibit 23-10 -Refer to Exhibit 23-10. The profit-maximizing single-price monopolist earns profits equal to what area?

Correct Answer
verified

Exhibit 23-3 -Refer to Exhibit 23-3. The level of output the profit-maximizing perfectly price-discriminating monopolist produces is

Correct Answer
verified

Exhibit 23-6 -Refer to Exhibit 23-6. Let C be the demand curve facing a perfectly price-discriminating monopolist and P₀ the price it charges for the last unit of X it sells. The marginal cost of the last unit

Correct Answer
verified

Suppose the local pharmacy charges lower prices to senior citizens than it charges to younger customers. The pharmacy is practicing

Correct Answer
verified

Exhibit 23-7 -Refer to Exhibit 23-7. Let D be the demand curve facing a perfectly price-discriminating monopolist. The marginal revenue it receives from selling the 150th unit of good X sold equals

Correct Answer
verified

Competition is legally prohibited when barriers to entry take the form of

Correct Answer
verified

If a perfectly competitive firm and a single-price monopolist face the same demand and cost curves, then the competitive firm will produce a

Correct Answer
verified

Exam 23: Monopoly

Exhibit 23-1 -Refer to Exhibit 23-1. If the product is produced under single-price monopoly, what do profits equal at the profit maximizing level of output?

Correct AnswerverifiedShow Answer

Exhibit 23-7 -Refer to Exhibit 23-7. The total revenue collected by a profit-maximizing single-price monopolist is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Exhibit 23-2 -Refer to Exhibit 23-2. Total cost at the profit-maximizing quantity of output is the

Correct AnswerverifiedShow Answer

A monopolist can sell 26,000 units at a price of $30 per unit. Lowering price by $1 raises the quantity demanded by 1,000 units. What is the change in total revenue resulting from this price change?

Correct AnswerverifiedShow Answer

Exhibit 23-8 ​ ​ -Refer to Exhibit 23-8. The marginal cost of the last unit produced at the profit-maximizing output level equals

Correct AnswerverifiedShow Answer

Describe the circumstance under which profit maximization is the same as revenue maximization. Use a hypothetical numerical example to help explain why this is so.

Correct AnswerverifiedIn the unlikely event that a firm has no...View AnswerShow Answer

If a monopolist practices perfect price discrimination, then it will have

Correct AnswerverifiedShow Answer

Buying low and selling high is often referred to as

Correct AnswerverifiedShow Answer

A seller that has the ability (to some degree) to control the price of the product it sells is called a price

Correct AnswerverifiedShow Answer

Exhibit 23-7 -Refer to Exhibit 23-7. The maximum profits earned by a single-price monopolist producing good X are

Correct AnswerverifiedShow Answer

Suppose that your school pays one rate for the first one million kilowatts of electricity and a lower rate for any power it uses over one million kilowatts. What economic concept is occurring here?

Correct AnswerverifiedShow Answer

When a monopolist can perfectly price discriminate, it follows that

Correct AnswerverifiedShow Answer

Exhibit 23-10 -Refer to Exhibit 23-10. The profit-maximizing single-price monopolist earns profits equal to what area?

Correct AnswerverifiedShow Answer

Exhibit 23-3 -Refer to Exhibit 23-3. The level of output the profit-maximizing perfectly price-discriminating monopolist produces is

Correct AnswerverifiedShow Answer

Exhibit 23-6 -Refer to Exhibit 23-6. Let C be the demand curve facing a perfectly price-discriminating monopolist and P0 the price it charges for the last unit of X it sells. The marginal cost of the last unit

Correct AnswerverifiedShow Answer

Suppose the local pharmacy charges lower prices to senior citizens than it charges to younger customers. The pharmacy is practicing

Correct AnswerverifiedShow Answer

Exhibit 23-7 -Refer to Exhibit 23-7. Let D be the demand curve facing a perfectly price-discriminating monopolist. The marginal revenue it receives from selling the 150th unit of good X sold equals

Correct AnswerverifiedShow Answer

Competition is legally prohibited when barriers to entry take the form of

Correct AnswerverifiedShow Answer

If a perfectly competitive firm and a single-price monopolist face the same demand and cost curves, then the competitive firm will produce a

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Exhibit 23-8 -Refer to Exhibit 23-8. The marginal cost of the last unit produced at the profit-maximizing output level equals

Correct Answer
verified

Correct Answer
verified
In the unlikely event that a firm has no...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Exhibit 23-6 -Refer to Exhibit 23-6. Let C be the demand curve facing a perfectly price-discriminating monopolist and P₀ the price it charges for the last unit of X it sells. The marginal cost of the last unit

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
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