econ12 - Submitted by Le, Thao (THAOLE2) on 12/9/2011...

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Submitted by Le, Thao (THAOLE2) on 12/9/2011 9:16:34 PM Points Awarded 5.00 Points Missed 5.00 Percentage 50.0 % 1. Which of the following is an example of natural monopoly? A) a market for cable TV services B) a market for breakfast cereals C) a market for cold medicines D) a market for cigarettes Points Earned : 0.5/0.5 Correct Answer(s): A 2. A natural monopoly arises when A) economies of scale are so great that only one firm can exist in a market. B) a firm acquires a patent. C) two firms merge to become the only firm serving an entire market. D) a single firm controls all of a natural resource. Points Earned : 0.5/0.5 Correct Answer(s): A 3. To maximize profit, an unregulated natural monopoly will produce at a level where: A) marginal revenue is greater than marginal cost. B) marginal revenue is greater than average revenue. C) marginal revenue is less than marginal cost. D) marginal revenue is equal to marginal cost. Points Earned : 0.5/0.5 Correct D
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4. Figure 13.1 shows a demand and costs of an unregulated monopoly. At the profit maximization output, the firm earns a profit of: A) $0. B) $10,000. C) $50,000. D) $80,000. Points Earned : 0.5/0.5 Correct Answer(s): B 5. Figure 13.1 shows a demand and costs of an unregulated monopoly. At the output level of 22,000 units, A) the firm's marginal revenue is smaller than its marginal cost. B) the firm is earning a zero economic profit. C) the firm is producing more than its profit maximizing level of output. D) All of the above are correct. Points
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econ12 - Submitted by Le, Thao (THAOLE2) on 12/9/2011...

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