question
A monopolist can make an economic profit in the long run because of
answer
barriers to entry.
question
A monopoly
answer
produces a good with no close substitutes AND faces a downward-sloping demand curve.
question
The key idea behind price discrimination is to convert consumer surplus into
answer
economic profit.
question
Which of the following is ALWAYS true when a single-price monopolist maximizes its profit?
answer
MR = MC
question
Positive economic profit per unit is equal to
answer
AR > AC
question
A monopoly firm is different from a competitive firm in that:
answer
a monopolist can influence market price whereas a competitive firm cannot.
question
The demand curve for a monopolist is:
answer
the market demand curve.
question
If a monopolist increases output from 14 to 15 by lowering its price from $32 to $31, marginal revenue is:
answer
$17
question
For a monopolist, the price of the product:
answer
exceeds the marginal revenue.
question
If a monopolist produces beyond the quantity where MC = MR:
answer
the increase in revenue is less than the increase in cost.
question
If MR > MC, a monopolist should:
answer
increase production.
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