Example Questions: Monopoly. 1. For the monopolist shown below, the profit maximizing level of output is: Q1. Q2. Q3. Q4. Q5. 2. When the demand curve is downward sloping, marginal revenue is equal to price. equal to average revenue. less than price. more than price.
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1. For the monopolist shown below, the profit maximizing level of output is:
2. When the demand curve is downward sloping, marginal revenue is
4. Compared to the equilibrium price and quantity sold in a competitive market, a monopolist will charge a ______________ price and sell a ______________ quantity.
5. The monopolist has no supply curve because
6. Which of the following is NOT true for monopoly?
7. The Lerner index measures
8. If the monopolist is not regulated, the price will be set at _____.
C. P3D. P4
E. none of the above
9. Suppose that the government decides to limit monopoly power with price regulation. If the government sets the price at the competitive level, it will set the price at _____.
C. P3D. P4
E. none of the above
10. In moving from the competitive level of output and price to the monopoly level of output and price, the deadweight loss is the area:
1. Rather than charging a single price to all customers, a firm charges a higher price to men and a lower price to women. By engaging in this practice, the firm:
2. An electric power company uses block pricing for electricity sales. Block pricing is an example of
3. Third-degree price discrimination involves
4. Which of the following is NOT a condition for third degree price discrimination?
5. McDonald's restaurant located near the high school offered a Tuesday special for high school students. If high school students showed their student ID cards, they would be given 50 cents off any special meal. This practice is an example of:
6. When a monopolist engages in perfect price discrimination,
1. Which of following is a key assumption of a perfectly competitive market?
3. A firm maximizes profit by operating at the level of output where
4. If current output is less than the profit-maximizing output, which must be true?
5. The demand curve facing a perfectly competitive firm is
6. Because of the relationship between a perfectly competitive firm's demand curve and its marginal revenue curve, the profit maximization condition for the firm can be written as
7. If price is between AVC and ATC, the best and most practical thing for a perfectly competitive firm to do is
8. The supply curve for a competitive firm is
9. Consider the above diagram where a perfectly competitive firm faces a price of $40. The profit-maximizing output is
10. At the profit-maximizing level of output, ATC is
11. In a supply-and-demand graph, producer surplus can be pictured as the
12. What happens in a perfectly competitive industry when economic profit is greater than zero?
13. At P=$80, the profit-maximizing output in the short run is
C. 39.D. 50.
14. At P=$80, how much is profit in the short run?
A. $88. B. $306.
C. $351.D. $1000.