Microeconomics- Chapter 12 HW - Assignment Essays %

question

Suppose a pure monopolist is charging a price of $12 and the associated marginal revenue is $9. We thus know that:

answer

total revenue is increasing.

question

A natural monopoly occurs when

answer

long-run average costs decline continuously through the range of demand.

question

With respect to the pure monopolist's demand curve, it can be said that:

answer

price exceeds marginal revenue at all outputs greater than 1.

question

For a pure monopolist the relationship between total revenue and marginal revenue is such that:

answer

marginal revenue is positive when total revenue is increasing, but marginal revenue becomes negative when total revenue is decreasing.

question

Answer the question on the basis of the following table showing the demand schedule facing a nondiscriminating monopolist:

P Qd
$10 1
7 2
5 3
3 4
1 5

Refer to the table. The monopolist will select its profit-maximizing level of output somewhere within the:

answer

1-3 unit range of output.

question

If a pure monopolist can price discriminate by separating buyers into two or more groups:

answer

the firm will face multiple marginal revenue curves.

question

What do economies of scale, the ownership of essential raw materials, and patents have in common?

answer

They are all barriers to entry.

question

A nondiscriminating pure monopolist finds that it can sell its 50th unit of output for $50. We can surmise that the marginal:

answer

revenue of the 50th unit is less than $50.

question

In the long run, a pure monopolist will maximize profits by producing that output at which marginal cost is equal to:

answer

marginal revenue.

question

Which of the following is characteristic of a pure monopolist's demand curve?

answer

It is the same as the market demand curve.

question

Economic profit in the long run is:

answer

possible for a pure monopoly but not for a pure competitor.

question

Which of the following is incorrect? Imperfectly competitive producers:

answer

do not compete with one another.

question

The demand curve faced by a pure monopolist:

answer

is less elastic than that faced by a single purely competitive firm.

question

Suppose that a pure monopolist can sell 20 units of output at $10 per unit and 21 units at $9.75 per unit. The marginal revenue of the 21st unit of output is:

answer

$4.75.

question

The MR = MC rule:

answer

applies both to pure monopoly and pure competition.

question

Refer to the diagram. If price is reduced from P1 to P2, total revenue will:

answer

increase by C - A.

question

At its profit-maximizing output, a pure nondiscriminating monopolist achieves:

answer

neither productive efficiency nor allocative efficiency.

question

A dilemma of regulation is that:

answer

the regulated price that achieves allocative efficiency is also likely to result in losses.

question

If a nondiscriminating pure monopolist decides to sell one more unit of output, the marginal revenue associated with that unit will be:

answer

the price at which that unit is sold less the price reductions that apply to all other units of output.

question

In which one of the following market models is X-inefficiency most likely to be the greatest?

answer

Pure monopoly.

question

I made a 100 on this assignment.

answer

Good luck!

1 of 21

question

Suppose a pure monopolist is charging a price of $12 and the associated marginal revenue is $9. We thus know that:

answer

total revenue is increasing.

question

A natural monopoly occurs when

answer

long-run average costs decline continuously through the range of demand.

question

With respect to the pure monopolist's demand curve, it can be said that:

answer

price exceeds marginal revenue at all outputs greater than 1.

question

For a pure monopolist the relationship between total revenue and marginal revenue is such that:

answer

marginal revenue is positive when total revenue is increasing, but marginal revenue becomes negative when total revenue is decreasing.

question

answer

1-3 unit range of output.

question

If a pure monopolist can price discriminate by separating buyers into two or more groups:

answer

the firm will face multiple marginal revenue curves.

question

What do economies of scale, the ownership of essential raw materials, and patents have in common?

answer

They are all barriers to entry.

question

A nondiscriminating pure monopolist finds that it can sell its 50th unit of output for $50. We can surmise that the marginal:

answer

revenue of the 50th unit is less than $50.

question

In the long run, a pure monopolist will maximize profits by producing that output at which marginal cost is equal to:

answer

marginal revenue.

question

Which of the following is characteristic of a pure monopolist's demand curve?

answer

It is the same as the market demand curve.

question

Economic profit in the long run is:

answer

possible for a pure monopoly but not for a pure competitor.

question

Which of the following is incorrect? Imperfectly competitive producers:

answer

do not compete with one another.

question

The demand curve faced by a pure monopolist:

answer

is less elastic than that faced by a single purely competitive firm.

question

Suppose that a pure monopolist can sell 20 units of output at $10 per unit and 21 units at $9.75 per unit. The marginal revenue of the 21st unit of output is:

answer

$4.75.

question

The MR = MC rule:

answer

applies both to pure monopoly and pure competition.

question

Refer to the diagram. If price is reduced from P1 to P2, total revenue will:

answer

increase by C - A.

question

At its profit-maximizing output, a pure nondiscriminating monopolist achieves:

answer

neither productive efficiency nor allocative efficiency.

question

A dilemma of regulation is that:

answer

the regulated price that achieves allocative efficiency is also likely to result in losses.

question

If a nondiscriminating pure monopolist decides to sell one more unit of output, the marginal revenue associated with that unit will be:

answer

the price at which that unit is sold less the price reductions that apply to all other units of output.

question

In which one of the following market models is X-inefficiency most likely to be the greatest?

answer

Pure monopoly.

question

I made a 100 on this assignment.

answer

Good luck!

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