Pre-Test Chapter 22 ed17 - Prof Keep Econ Pre-Test Chap 22...

Pre-Test Chapter 22 ed17
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Prof Keep Econ Pre-Test Chap 22 ed 17 Page 1 of 9 Pre-Test Chapter 22 ed17 Multiple Choice Questions 1. Refer to the above diagram. At the profit-maximizing level of output, total revenue will be: A. NM times 0 M . B. 0 AJE . C. 0 EGC . D. 0 EHB . 2. For a pure monopolist marginal revenue is less than price because: A. the monopolist's demand curve is perfectly elastic. B. the monopolist's demand curve is perfectly inelastic. C. when a monopolist lowers price to sell more output, the lower price applies to all units sold. D. the monopolist's total revenue curve is linear and slopes upward to the right. 3. Suppose for a regulated monopoly that price equals minimum ATC but price exceeds MC. This means that: A. both productive and allocative efficiency are being achieved. B. productive efficiency is being achieved, but not allocative efficiency. C. allocative efficiency is being achieved, but not productive efficiency. D. neither productive nor allocative efficiency is being achieved.
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Prof Keep Econ Pre-Test Chap 22 ed 17 Page 2 of 9 4. Refer to the figure above. Suppose the graphs represent the demand for use of a local golf course for which there is no significant competition (it has a local monopoly); P denotes the price of a round of golf; Q is the quantity of rounds "sold" each day. If the left graph represents the demand during weekdays, and the right graph the weekend demand, this profit-maximizing golf course will earn how much economic profit over the course of a full seven-day week? A. $4200. B. $3700. C. $3400. D. $2700.
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Prof Keep Econ Pre-Test Chap 22 ed 17 Page 3 of 9 5. Refer to the above two diagrams for individual firms. In Figure 1 line B represents the firm's: A. demand and marginal revenue curves. B. marginal revenue curve only. C. demand curve only. D. average revenue curve only. 6. Which of the above diagrams correctly portray the demand ( D ) and marginal revenue (MR) curves of a pure monopolist that is able to price discriminate by charging each customer their maximum willingness to pay? A. A
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