microeconomics batting practice 8 for final

A monopoly has two key features, which are ________.

Which of the following is a barrier to entry for a monopoly?

A pure monopoly is

The marginal revenue curve for a single-price monopoly

If the demand for its product is elastic, a monopoly's

Monopolies can make an economic profit in the long run because of

For the unregulated, single-price monopoly shown in the figure above, when its profit is maximized, output will be

The above figure illustrates a single-price unregulated monopolist. If the monopolist maximizes its profit, the deadweight loss equals

A price searcher will earn economic profits as long as his price exceeds:

A monopolist can earn an economic profit only when:

The profit-maximizing output level for a price searcher is where the:

When the price searcher is maximizing total profit in the figure, the average total cost of producing that output level is:

According to the information provided in the figure, if the Rudd Ice Company was a Price Searcher and is currently charging a price of $6, what would you advise Rudd to do?

In the figure, at the profit-maximizing or loss-minimizing output, the monopolist's total economic profit is: mc hits ATC at 60

In the figure, at the profit-maximizing or loss-minimizing output, the monopolist's total economic profit is: MC hits ATC at 300

For a monopolist to practice price discrimination, one necessary condition is that the product offered for sale must be:

A monopolist currently sells 5 units of a good. If marginal revenue on the fifth unit of the good is $20, what must be true about the price of the good?

For a monopoly, the marginal revenue curve:

Utility companies that sell water must build a network of water pipes to every home in the community. Once the network has been built, the marginal cost of providing water is relatively low and constant. What is the source of monopoly power here?

Which of the following is true about a monopoly?

Which of the following is NOT necessary for a firm to engage in price discrimination?

1. When is a firm considered to have a monopoly?

1. What are barriers to entry?

1. Why are government-created barriers to entry so strong?

1. What are some examples of how control of a vital resource leads to monopoly?

A vital resource in the wool making industry (during the 1400s) was the chemical alum which was used to dye the wool. The only source of high quality alum was the Ottoman Empire which earned monopoly profits from the sale of alum. In 1490 a large deposit of alum was discovered near Rome which was taken under control of the Pope. The Pope attempted to establish a monopoly by declaring that any Christian caught using Ottoman alum would be excommunicated. Unfortunately, for the Pope, Christian wool makers continued buying Ottoman alum because the price of Ottoman alum was cheaper than Roman alum.

1. How can software incompatibility provide a barrier to entry?

1. How can sports leagues use incompatibility to erect a barrier to entry?

1. How can economies of scale create a barrier to entry?

1. What are natural monopolies?

1. Why do copyright laws promote the publication of books?

1. Why do patents promote innovation?

Patents are similar to copyrights for inventions in that they award the exclusive right, for a given number of years, to sell the patented item. Patents confer benefits on innovators proportional to the social benefit of the invention. Patents create an incentive that rewards self-interested inventors to work for the benefit of society.