ECON 101 exam 3 topic 9 - Assignment Essays

question

the number of firms and whether products are differentiated

answer

market structures are categorized by:

question

monopoly profits can continue in the long run because the monopoly produces more and charges a higher price than the comparable perfectly competitive industry

answer

which of the following statements about the differences between monopoly and perfect competition is INCORRECT?

question

produces a product with no close substitutes

answer

a monopoly:

question

a monopoly has no rivals

answer

which of the following statements concerning monopoly is TRUE?

question

establishing control over diamond mines

answer

De Beers became a monopoly by:

question

less; more

answer

a monopolist is likely to produce ____ and charge ___ Than a comparable perfectly competitive firm

question

government-set barriers

answer

if you had a license for the exclusive right to sell breakfast bagels in your community, your monopoly would result from:

question

market power

answer

the ability of a monopolist to raise the price of a product above the competitive level by reducing the output is known as:

question

increasing returns to sale

answer

high fixed costs resulting from the enormous quantity of capital used in this system enable decreasing average cost for any conceivable level of demand, your monopoly would result from:

question

natural monopolies

answer

most electric, gas, and water companies are examples of:

question

may have economic profits in the long run

answer

in contrast with perfect competition, a monopolist:

question

you own exclusive rights to harvest lemons from all domestic citrus orchards

answer

you own a lemonade stand in a competitive market, and as such, you are a price-taking firm. which of the following events would most likely increase your market power?

question

barriers to entry

answer

conditions that keep new firms out of a monopoly market area:

question

has economies of scales over the entire range of production that is relevant to its market

answer

a natural monopoly exists whenever a single firm:

question

economies of scale

answer

you have high fixed costs due to the quantity of capital uses to build jets, and average cost is decreasing for all levels of demand. in this case, your monopoly would result from:

question

a diamond mining company

answer

natural monopolies are likely to include all of the following EXCEPT:

question

control of scarce resources, economies of scale, and patents and copyrights

answer

which of the following are barriers to entry?

question

earns an economic profit in the long run

answer

the large barriers to entry are a reason a monopoly:

question

MR=MC is a profit maximizing rule for any firm

answer

which of the following is true?

question

$20,000

answer

wendy has a monopoly in the retailing of motor home. she can sell five per week at $21,000 each. if she wants to sell six, she can charge only $20,000 each. the quantity effect of selling the sixth motor home is:

question

-$5,000

answer

if wendy wants to sell six, she can only charge $20,000 each. the price effect of selling the sixth motor home is:

question

$45;$50

answer

mr. porter sells 10 bottles of champagne per week at $50 per bottle. he can sell 11 bottles per week if he lowers the price to $45 per bottle. the quantity and the price effects on total revenue would be, respectively ,an increase of ______ and a decrease of ____.

question

downward-sloping; perfectly elastic

answer

one of the major differences between a monopolist and a purely competitive firm is that the monopolist has a ____ demand curve, while the purely competitive firm has a ___ demand curve

question

downward-sloping

answer

the demand curve facing a monopolist is:

question

increasing; increasing

answer

a monopolist responds to an increase in demand by ____ price and ____ output.

question

increasing; decreasing

answer

a monopolist responds to an increase in marginal cost by ___ price and ___ output.

question

$12

answer

look at the figure A profit maximizing monopoly firm. this firm's profit per unit it:

question

answer

prices and demand table: the marginal cost of producing a hat is $18. suppose he can perfectly price-discriminate. how many hats will he produce?

question

$400

answer

demand and total cost table: the table shows lenoias demand and total cost of producing electricity, to maximize profits. leonia should charge the price of:

question

in the long run, economic profits are driven to zero in both a monopoly and a perfectly competitive market

answer

which of the following statements about monopoly equilibrium and perfectly competitive equilibrium INCORRECT?

question

$80

answer

ppv: assume that the marginal cost and average cost are a constant $20. if the cable company is a monopoly, how much is deadweight loss when the monopolist maximizes profit?

question

$40

answer

demand, revenue, and cost curves table: if the gov wants to regulate the figglenuts R us, such that the entire DWL would be eliminated in the short run, it would impose a price ceiling of:

question

monopolies produce too little and charge too much from the standpoint of efficiency

answer

which of the following TRUE

question

increase profits

answer

a monopolist or an imperfectly competitive firm practices price discrimination primarily to:

question

impose a price ceiling to reduce economic profit

answer

once government policy for dealing with natural monopoly is to:

question

higher, less elastic

answer

price discrimination leads to a ___ price for consumers with a ___ demand:

question

price-inelastic; small

answer

because business travelers demand for airline flights is relatively ____ small increases in price will result in relatively ___ decrease in additional business travelers

question

deadweight; reduced

answer

if the gov allowed only one airline to serve the entire US market, there would be a ___ loss with ____ efficiency in the airline industry:

question

a fourth of july sale

answer

which of the following is NOT an example of price discrimination?

question

less elastic

answer

assuming that this pricing strategy increases the profits of the pool, we can conclude that nonresidents must have a _____ demand for swimming at the pool than residents:

question

less price-elastic

answer

this pricing strategy increases the profits of the community college. using this info, we can conclude that nonresidents must have a ____ demand for attending the community college than residents.

question

charge a lower price in US and a higher price in JApan

answer

if the Japanese steel firm wishes to maximize its profits, it should:

question

men;elastic

answer

suppose the elasticity of demand for tickets to broadway shows is 2.0 for men and 0.3 for women. to use price discrimination to increase profits, the producers should charge lower prices to ___ because their demand is_____.

1 of 43

question

the number of firms and whether products are differentiated

answer

market structures are categorized by:

question

monopoly profits can continue in the long run because the monopoly produces more and charges a higher price than the comparable perfectly competitive industry

answer

which of the following statements about the differences between monopoly and perfect competition is INCORRECT?

question

produces a product with no close substitutes

answer

a monopoly:

question

a monopoly has no rivals

answer

which of the following statements concerning monopoly is TRUE?

question

establishing control over diamond mines

answer

De Beers became a monopoly by:

question

less; more

answer

a monopolist is likely to produce ____ and charge ___ Than a comparable perfectly competitive firm

question

government-set barriers

answer

if you had a license for the exclusive right to sell breakfast bagels in your community, your monopoly would result from:

question

market power

answer

the ability of a monopolist to raise the price of a product above the competitive level by reducing the output is known as:

question

increasing returns to sale

answer

high fixed costs resulting from the enormous quantity of capital used in this system enable decreasing average cost for any conceivable level of demand, your monopoly would result from:

question

natural monopolies

answer

most electric, gas, and water companies are examples of:

question

may have economic profits in the long run

answer

in contrast with perfect competition, a monopolist:

question

you own exclusive rights to harvest lemons from all domestic citrus orchards

answer

you own a lemonade stand in a competitive market, and as such, you are a price-taking firm. which of the following events would most likely increase your market power?

question

barriers to entry

answer

conditions that keep new firms out of a monopoly market area:

question

has economies of scales over the entire range of production that is relevant to its market

answer

a natural monopoly exists whenever a single firm:

question

economies of scale

answer

you have high fixed costs due to the quantity of capital uses to build jets, and average cost is decreasing for all levels of demand. in this case, your monopoly would result from:

question

a diamond mining company

answer

natural monopolies are likely to include all of the following EXCEPT:

question

control of scarce resources, economies of scale, and patents and copyrights

answer

which of the following are barriers to entry?

question

earns an economic profit in the long run

answer

the large barriers to entry are a reason a monopoly:

question

MR=MC is a profit maximizing rule for any firm

answer

which of the following is true?

question

$20,000

answer

question

-$5,000

answer

if wendy wants to sell six, she can only charge $20,000 each. the price effect of selling the sixth motor home is:

question

$45;$50

answer

question

downward-sloping; perfectly elastic

answer

one of the major differences between a monopolist and a purely competitive firm is that the monopolist has a ____ demand curve, while the purely competitive firm has a ___ demand curve

question

downward-sloping

answer

the demand curve facing a monopolist is:

question

increasing; increasing

answer

a monopolist responds to an increase in demand by ____ price and ____ output.

question

increasing; decreasing

answer

a monopolist responds to an increase in marginal cost by ___ price and ___ output.

question

$12

answer

look at the figure A profit maximizing monopoly firm. this firm's profit per unit it:

question

answer

prices and demand table: the marginal cost of producing a hat is $18. suppose he can perfectly price-discriminate. how many hats will he produce?

question

$400

answer

demand and total cost table: the table shows lenoias demand and total cost of producing electricity, to maximize profits. leonia should charge the price of:

question

in the long run, economic profits are driven to zero in both a monopoly and a perfectly competitive market

answer

which of the following statements about monopoly equilibrium and perfectly competitive equilibrium INCORRECT?

question

$80

answer

ppv: assume that the marginal cost and average cost are a constant $20. if the cable company is a monopoly, how much is deadweight loss when the monopolist maximizes profit?

question

$40

answer

demand, revenue, and cost curves table: if the gov wants to regulate the figglenuts R us, such that the entire DWL would be eliminated in the short run, it would impose a price ceiling of:

question

monopolies produce too little and charge too much from the standpoint of efficiency

answer

which of the following TRUE

question

increase profits

answer

a monopolist or an imperfectly competitive firm practices price discrimination primarily to:

question

impose a price ceiling to reduce economic profit

answer

once government policy for dealing with natural monopoly is to:

question

higher, less elastic

answer

price discrimination leads to a ___ price for consumers with a ___ demand:

question

price-inelastic; small

answer

because business travelers demand for airline flights is relatively ____ small increases in price will result in relatively ___ decrease in additional business travelers

question

deadweight; reduced

answer

if the gov allowed only one airline to serve the entire US market, there would be a ___ loss with ____ efficiency in the airline industry:

question

a fourth of july sale

answer

which of the following is NOT an example of price discrimination?

question

less elastic

answer

assuming that this pricing strategy increases the profits of the pool, we can conclude that nonresidents must have a _____ demand for swimming at the pool than residents:

question

less price-elastic

answer

this pricing strategy increases the profits of the community college. using this info, we can conclude that nonresidents must have a ____ demand for attending the community college than residents.

question

charge a lower price in US and a higher price in JApan

answer

if the Japanese steel firm wishes to maximize its profits, it should:

question

men;elastic

answer

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