Microeconomics HW 12a - Assignment Essays %

question

The demand curve confronting a nondiscriminating pure monopolist is

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the same as the industry's demand curve.

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Under pure monopoly, a profit-maximizing firm will produce

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In the elastic range of its demand curve

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A pure monopolist

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will realize an economic profit if price exceeds ATC at the profit-maximizing/loss-minimizing level of output.

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

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revenue of the 50th unit is less than $50

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Which phrase would be most characteristic of pure monopoly?

answer

sole seller

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If a monopolist's marginal revenue is $3.00 and its marginal cost is $4.50, it will increase its profits by

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reducing output and raising price

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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.

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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

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$4.75.

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"Price makers" refers to firms that

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face a downward-sloping demand curve.

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Refer to the graph, which shows the revenue curves for a monopolist. What price should be charged in order to maximize total revenue?

answer

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In the graph, what is the profit-maximizing level of output for this pure monopolist?

answer

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Which of the following is a barrier to entry?

answer

patents and licenses

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Barriers to entry

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can result from government regulation.

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The profit-maximizing monopolist will realize a

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profit of $16

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Refer to the diagram for a pure monopolist. If a regulatory commission sets the price to achieve the socially optimal allocation of resources, it will have to

answer

subsidize the monopolist or the monopolist will go bankrupt in the long run

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Refer to the diagrams. Firm A is a

answer

pure competitor, and Firm B is a pure monopoly.

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A nondiscriminating monopolist will find that marginal revenue

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is less than average revenue or price.

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Which is a major criticism of a monopoly as a source of allocative inefficiency?

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A monopolist fails to expand output to the level where the consumers' valuation of an additional unit is just equal to its opportunity cost.

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Suppose that a pure monopolist can sell 5 units of output at $4 per unit and 6 units at $3.90 per unit. The monopolist will produce and sell the sixth unit if its marginal cost is

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$3.40 or less

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

answer

It is the same as the market demand curve.

1 of 20

question

The demand curve confronting a nondiscriminating pure monopolist is

answer

the same as the industry's demand curve.

question

Under pure monopoly, a profit-maximizing firm will produce

answer

In the elastic range of its demand curve

question

A pure monopolist

answer

will realize an economic profit if price exceeds ATC at the profit-maximizing/loss-minimizing level of output.

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

Which phrase would be most characteristic of pure monopoly?

answer

sole seller

question

If a monopolist's marginal revenue is $3.00 and its marginal cost is $4.50, it will increase its profits by

answer

reducing output and raising price

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

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

"Price makers" refers to firms that

answer

face a downward-sloping demand curve.

question

Refer to the graph, which shows the revenue curves for a monopolist. What price should be charged in order to maximize total revenue?

answer

question

In the graph, what is the profit-maximizing level of output for this pure monopolist?

answer

question

Which of the following is a barrier to entry?

answer

patents and licenses

question

Barriers to entry

answer

can result from government regulation.

question

The profit-maximizing monopolist will realize a

answer

profit of $16

question

Refer to the diagram for a pure monopolist. If a regulatory commission sets the price to achieve the socially optimal allocation of resources, it will have to

answer

subsidize the monopolist or the monopolist will go bankrupt in the long run

question

Refer to the diagrams. Firm A is a

answer

pure competitor, and Firm B is a pure monopoly.

question

A nondiscriminating monopolist will find that marginal revenue

answer

is less than average revenue or price.

question

Which is a major criticism of a monopoly as a source of allocative inefficiency?

answer

A monopolist fails to expand output to the level where the consumers' valuation of an additional unit is just equal to its opportunity cost.

question

Suppose that a pure monopolist can sell 5 units of output at $4 per unit and 6 units at $3.90 per unit. The monopolist will produce and sell the sixth unit if its marginal cost is

answer

$3.40 or less

question

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

answer

It is the same as the market demand curve.

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