Consumer surplus is a positive in the case of a

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Essentials of Economics
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Chapter 2 / Exercise 2
Essentials of Economics
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18) Consumer surplus is A) positive in the case of a monopolist practising perfect price discrimination. B) equal to price minus marginal cost. C) less in the case of a single-price monopoly than in the case of a perfectly competitive industry. D) zero for a single-price monopolist. E) greater in a single-price monopoly than in a perfectly competitive industry. Answer: C
Type: MC Topic: Single-Price Monopoly and Competition Compared Skill: Recognition AACSB: Reflective Thinking 19) The creation of a monopoly results in gains to C Type: MC
Topic: Single-Price Monopoly and Competition Compared Skill: Conceptual AACSB: Reflective Thinking 20) Rent seeking is best defined as B
Type: MC Topic: Single-Price Monopoly and Competition Compared Skill: Recognition AACSB: Reflective Thinking Pearson Canada Inc. 52
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Essentials of Economics
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Chapter 2 / Exercise 2
Essentials of Economics
Mankiw
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Parkin/Bade, Economics: Canada in the Global Environment 21) Methods of rent seeking include which of the following? I. Buying a monopoly II. Creating a monopoly III. Price discrimination A Type: MC
Topic: Single-Price Monopoly and Competition Compared Skill: Recognition AACSB: Reflective Thinking 22) Which one of the following is true for a single-price monopolist but not for a perfectly competitive firm? A) The firm maximizes profit by setting marginal cost equal to marginal revenue. B) The firm is a price-taker. C) The firm can sell any level of output at any price it sets. D) The firm's marginal cost is less than price. E) The firm's marginal revenue curve is horizontal. Answer: D Diff: 2 Type: MC
Topic: Single-Price Monopoly and Competition Compared Pearson Canada Inc. 53
Parkin/Bade, Economics: Canada in the Global Environment Use the figure below to answer the following questions. Figure 13.3.4 23) Consider the natural monopoly depicted in Figure 13.3.4. Total surplus is at a maximum when quantity is . . . . D
Diff: 3 Type: MC Topic: Single-Price Monopoly and Competition Compared

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