Lesson 9 Quiz (Microeconomics)

question

Barriers to entry that can create a monopoly include ______________ .

answer

Economies of "being established"

Ownership of essential resources

Large capital costs to produce the first unit

All the above (correct)

question

In a ____________ firm there is a separation between the demand line and the MR.

answer

Monopolistic competition
Monoply
Oligopoly
All the above***

question

According to the table above, this firm would most likely set price at the quantity where______________.

answer

MR=MC

question

Monopolies display __________behavior ( an economic condition that exists when consumers are actually paying a periodic fee to use a product).

answer

rent-seeking

question

Many firms exercise ____________________ such as when different prices are charged by telephone companies for individuals compared to businesses.

answer

Price discrimination

question

Figure 8.2. Monopoly cost and revenue relationships.

In Figure 8.2 , MR is ___________ price at every point except the initial point.

answer

less than

question

In Figure 8.3 below, the minimum of the ATC curve is where _________ = MC.

answer

question

In Figure 8.3 above at the profit maximizing output, the total revenue is $ __________.

answer

2400

question

A monopoly compare to pure competition has ____________ forces of increasing and diminishing returns to determine cost relationships.

answer

the same

question

Figure 8.2. Monopoly cost and revenue relationships.

In Figure 8.2, Total Cost at the profit maximizing output is $ ____________

answer

1197

question

There is no supply curve with any model other than ____________ which has a horizontal demand line.

answer

pure competition

question

While in the short run a(n) ___________ profit is more likely in an unregulated monopoly, that will attract competition and technology may break down the existing barriers.

answer

economic

question

In the "dilemma of regulation" the fair-return price (P = ATC) yields a(n) _____________ profit to assist the continued operation of the monopoly firm, but falls short of allocative efficiency from society's perspective.

answer

normal

question

Because the monopoly firm produces the entire output of the industry, average revenue and marginal revenue are ________ equal.

answer

not equal

question

Monopolies occur and evolve within a market because of barriers keeping competition away.

answer

true

question

Monopolies charge a higher price than competitive firms (actually like imposing a private tax) and increase income for _________ of monopoly firms.

answer

the owner's

question

All firms, including the one illustrated in the table above, will maximize profits (or minimize losses) where ___________ and set price on the demand curve at this quantity.

answer

mr=mc

question

Barriers to entry always allow a monopoly to maintain economic profits even in the long run.

answer

false

question

In Figure 8.2, Total Profit at the profit maximizing output is $ ____________ .

answer

285

question

_________________ occur(s) in many firms such as with airline ticketing.

answer

price discrimination

question

In Figure 8.3 above, the maximum profit output is at Quantity of ________ .

answer

8.0

question

In the "dilemma of regulation" the socially optimal price (P = MC) achieves __________________, but may result in losses and eventual shut down of the monopoly firm.

answer

allocative efficiency

question

The cost structures of a monopoly have ____________ relationships among fixed costs, variable costs, marginal costs, and average cost values as pure competition.

answer

the same

question

The monopoly will maximize profit by setting output at the point where

answer

mr=mc

question

Because the ______________ firm produces the entire output of the industry, average revenue and marginal revenue are not equal.

answer

monopoly

question

In the long run a monopoly will tend toward ___________ profits because economic profits would attract resources trying to overcome barriers.

answer

normal

question

Monopolies pass on to consumers their costs for __________________.

answer

all of the above

question

In Figure 8.3 below, MC = __________ is not the most efficient point (lowest cost point on the ATC).

answer

question

There is/are ______ supply curve(s) possible when a downward sloping demand line exists because there is _______ price(s) where a monopoly firm will supply a given quantity.

answer

question

In Figure 8.3 below, the firm will produce output for maximum profit at ________= MC.

answer

question

In Figure 8.2, since the MR and D are different lines, the intercept of MR and MC is ___________ on the demand line.

answer

no longer

question

A Monopoly firm has ______ supply curve(s).

answer

question

In Figure 8.3 above, the maximum profit price is at $ _________.

answer

300

1 of 33

question

Barriers to entry that can create a monopoly include ______________ .

answer

Economies of "being established"

Ownership of essential resources

Large capital costs to produce the first unit

All the above (correct)

question

In a ____________ firm there is a separation between the demand line and the MR.

answer

Monopolistic competition
Monoply
Oligopoly
All the above***

question

According to the table above, this firm would most likely set price at the quantity where______________.

answer

MR=MC

question

Monopolies display __________behavior ( an economic condition that exists when consumers are actually paying a periodic fee to use a product).

answer

rent-seeking

question

Many firms exercise ____________________ such as when different prices are charged by telephone companies for individuals compared to businesses.

answer

Price discrimination

question

Figure 8.2. Monopoly cost and revenue relationships.

In Figure 8.2 , MR is ___________ price at every point except the initial point.

answer

less than

question

In Figure 8.3 below, the minimum of the ATC curve is where _________ = MC.

answer

question

In Figure 8.3 above at the profit maximizing output, the total revenue is $ __________.

answer

2400

question

A monopoly compare to pure competition has ____________ forces of increasing and diminishing returns to determine cost relationships.

answer

the same

question

Figure 8.2. Monopoly cost and revenue relationships.

In Figure 8.2, Total Cost at the profit maximizing output is $ ____________

answer

1197

question

There is no supply curve with any model other than ____________ which has a horizontal demand line.

answer

pure competition

question

While in the short run a(n) ___________ profit is more likely in an unregulated monopoly, that will attract competition and technology may break down the existing barriers.

answer

economic

question

answer

normal

question

Because the monopoly firm produces the entire output of the industry, average revenue and marginal revenue are ________ equal.

answer

not equal

question

Monopolies occur and evolve within a market because of barriers keeping competition away.

answer

true

question

Monopolies charge a higher price than competitive firms (actually like imposing a private tax) and increase income for _________ of monopoly firms.

answer

the owner's

question

All firms, including the one illustrated in the table above, will maximize profits (or minimize losses) where ___________ and set price on the demand curve at this quantity.

answer

mr=mc

question

Barriers to entry always allow a monopoly to maintain economic profits even in the long run.

answer

false

question

In Figure 8.2, Total Profit at the profit maximizing output is $ ____________ .

answer

285

question

_________________ occur(s) in many firms such as with airline ticketing.

answer

price discrimination

question

In Figure 8.3 above, the maximum profit output is at Quantity of ________ .

answer

8.0

question

In the "dilemma of regulation" the socially optimal price (P = MC) achieves __________________, but may result in losses and eventual shut down of the monopoly firm.

answer

allocative efficiency

question

The cost structures of a monopoly have ____________ relationships among fixed costs, variable costs, marginal costs, and average cost values as pure competition.

answer

the same

question

The monopoly will maximize profit by setting output at the point where

answer

mr=mc

question

Because the ______________ firm produces the entire output of the industry, average revenue and marginal revenue are not equal.

answer

monopoly

question

In the long run a monopoly will tend toward ___________ profits because economic profits would attract resources trying to overcome barriers.

answer

normal

question

Monopolies pass on to consumers their costs for __________________.

answer

all of the above

question

In Figure 8.3 below, MC = __________ is not the most efficient point (lowest cost point on the ATC).

answer

question

There is/are ______ supply curve(s) possible when a downward sloping demand line exists because there is _______ price(s) where a monopoly firm will supply a given quantity.

answer

question

In Figure 8.3 below, the firm will produce output for maximum profit at ________= MC.

answer

question

In Figure 8.2, since the MR and D are different lines, the intercept of MR and MC is ___________ on the demand line.

answer

no longer

question

A Monopoly firm has ______ supply curve(s).

answer

question

In Figure 8.3 above, the maximum profit price is at $ _________.

answer

300

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