question
What are characteristics of a monopoly?
answer
Barriers to entry
A single firm in the market
A product with no close substitutes
A single firm in the market
A product with no close substitutes
question
A natural monopoly typically owes its monopoly position to
answer
economies of scale
question
The demand curve of the monopolist
answer
is the same as the industry demand curve
question
For a monopolist, marginal revenue is
answer
less than the price of the product
question
Since a monopolist faces the downward-sloping industry demand curve
answer
the price it will charge depends on the elasticity of demand
question
Profit maximization requires that marginal revenue equals marginal cost but does not require the
answer
average total cost to be at any particular level
question
The profit-maximizing price and quantity for a monopolist is
answer
On the demand curve where MC and MR intersect
question
When demand shifts left, the marginal revenue also shifts left and will intersect the marginal cost at a ___ output level, the output level will ___, and economic profits will likely ___
answer
lower
decrease
increase
decrease
increase
question
Considering a price discriminating monopolist:
answer
A monopoly will engage in price discrimination whenever feasible to increase profits.
Charging different prices to different customers does not mean the monopoly is necessarily using price discrimination
The monopolist will sell some of its output at higher prices to consumers with less elastic demand
Charging different prices to different customers does not mean the monopoly is necessarily using price discrimination
The monopolist will sell some of its output at higher prices to consumers with less elastic demand
question
Which of the following is necessary for a firm to practice price discrimination?
answer
The firm must be able to prevent resale of the product
question
As compared to a perfectly competitive industry, a monopoly industry with identical cost curves will
answer
produce less and set a higher price
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
