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Review Assessment: Q 10 Question 1 0 out of 1 points At its profit-maximizing output, a pure nondiscriminating monopolist achieves: Selected Answer: [None Given] Correct Answer: neither productive efficiency nor allocative efficiency. Question 2 0 out of 1 points A pure monopolist should never produce in the: Selected Answer: [None Given] Correct Answer: inelastic segment of its demand curve because it can increase total revenue and reduce total cost by increasing price. Question 3 0 out of 1 points Refer to the above data for a nondiscriminating monopolist. At its profit- maximizing output, this firm's total costs will be: Selected Answer: [None Given] Correct Answer: $198. Question 5 0 out of 1 points The short-run profit maximizing position of an unregulated pure monopolist is characterized by: Selected Answer: [None Given] Correct Answer: MR = MC. Question 7 0 out of 1 points If a monopolist were to produce in the inelastic segment of its demand curve: Selected Answer: [None Given] Correct Answer: marginal revenue would be negative. Review Assessment: Q 10 Name Q 10 Status Completed Score 0 out of 10 points Time Elapsed 0 hours, 0 minutes, and 6 seconds out of 0 hours and 30 minutes allowed. Instructions Question 1 0 out of 1 points A pure monopolist: Selected Answer: [None Given] Correct Answer: will realize an economic profit if price exceeds ATC at the profit-maximizing/loss-minimizing level of output. Question 2 0 out of 1 points Under which of the following situations would a monopolist increase profits by lowering price (and increasing output): Selected Answer: [None Given] Correct Answer: if it discovered that it was producing where MC < MR Question 3 0 out of 1 points Refer to the above diagram for a pure monopolist. If a regulatory commission seeks to achieve the most efficient allocation of resources to this line of production, it will set a price of: Selected Answer: [None Given] Correct Answer: P 2 . Question 4 0 out of 1 points If a monopolist's marginal revenue is $3.00 and its marginal cost is $4.50, it will increase its profits by: Selected Answer: [None Given] Correct Answer: reducing output and raising price. Question 5 0 out of 1 Assume the above figure applies to a pure monopolist. If this firm is able to price discriminate between child and adults, its economic profit will be: Selected Answer: [None Given] Correct Answer: [(P 1 MC) Q 1C ] + [(P 2 MC) Q 2 ]. Question 7 0 out of 1 points A natural monopoly occurs when: Selected Answer: [None Given] Correct Answer: long-run average costs decline continuously through the range of demand. Question 8 0 out of 1 points Refer to the above diagrams. The price will be _______ and the quantity will be _______ with the industry structure represented by diagram (B) compared to the one reprsented in (A). ... View Full Document

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