question
Pure economic profit must be at a maximum for a monopolist who has a level of output in which total revenue is at a maximum.
answer
False
question
A monopolist always earns an economic profit.
answer
True
question
At the point where the marginal revenue equals zero for a monopolist facing a straight-line demand curve, total revenue is:
answer
maximum.
question
A monopoly is:
answer
the only seller of a good for which there are no good substitutes in a market with high barriers to entry.
question
Monopolists are criticized because they are inefficient. What is meant by this statement?
answer
Monopolists usually don't produce at the minimum of the ATC.
question
What should a profit maximizing monopolist do if she is currently producing where MC < MR?
answer
Increase output until MC = MR.
question
The monopolist's demand curve is:
answer
identical to the market demand curve.
question
Which of the following is true for a monopolist?
answer
...
question
If marginal cost exceeds marginal revenue, a profit-maximizing monopolist will:
answer
...
question
Compared to a perfectly competitive firm with the same cost structure, a monopoly firm will charge a:
answer
higher price and sell more.
question
Under both perfect competition and monopoly, a firm:
answer
is a price maker.
question
There is only one gas station within hundreds of miles. The owner finds that when she charges $3 a gallon, she sells 199 gallons a day, and when she charges $2.99 a gallon, she sells 200 gallons a day. The marginal revenue of the 200th gallon of gas is:
answer
2.99
question
In Exhibit 9-10, the profit-maximizing or loss-minimizing output for the monopolist is:
answer
150 units per day.
question
A monopolist maximizes total revenue.
answer
True
question
Suppose a monopolist and a perfectly competitive firm have the same cost curves. The monopolistic firm would:
answer
charge a lower price than the perfectly competitive firm.
question
Which of the following is true under natural monopoly?
answer
Economies of scale exist.
question
A monopolist faces a downward sloping demand curve that is equal to which of the following?
answer
Its marginal cost curve.
question
A natural monopoly is a market where:
answer
...
question
A monopoly:
answer
...
question
Which of the following best explains an economic criticism of unregulated monopolists?
answer
...
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