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The revenue-maximizing output for a non-discriminating monopolist represented in the table given below is _____. Table 9.

1.The revenue-maximizing output for a non-discriminating monopolist represented in the table given below is _____.

Table 9.4

Quantity    Price ($)     Total cost ($)

0           10               10

1            9               12

2            8               19

3            7               23

4            6               31

5            5               46

6            4               69

7            3               99

a. ​2 units

b. ​5 units

c. ​0 units

d. ​3 units

e. ​4 units


2. Which of the following equations describes the relationship between market price (P), average revenue (AR), and marginal revenue (MR) for a non-discriminating monopolist?

a. ​P = AR > MR

b. ​P > AR > MR

c. ​P > AR = MR

d. ​P = AR = MR

e. ​P = AR < MR

3.

​A monopolist can either sell 100 units for $3 each or sell 160 units for $2 each. This implies that, for the given range of output, elasticity of demand for the monopolist’s product is:

a. ​infinite. 

b. ​one.

c. ​zero.

d. ​greater than one but not infinite.

e. ​less than zero.

4.

​Which of the following is true for a monopolist that engages in perfect price discrimination?

a. ​Perfect price discrimination restricts the total output produced by the monopolist.

b. ​Perfect price discrimination creates a deadweight loss.

c. ​Perfect price discrimination allows the monopolist to just break even and transfers the gain to consumers.

d. ​Perfect price discrimination allows the monopolist to reap the entire gains from production.

e. ​Perfect price discrimination results in the maximization of consumer surplus.


5.Identify a distinguishing feature of monopoly.

a. ​There are many firms in a monopolized industry.

b. ​A monopolist is a price taker.

c. ​A monopolist faces a horizontal demand curve.

d. ​There are no close substitutes for a monopolist's product.

e. ​There are no barriers to entry in a monopolized market.

6.Based on the information given in the table below, identify the range of output for which demand is unit elastic.

Table 9.2

Quantity

0

1

2

3

4

5

6

Price$

7

6

5

4

3

2

1

a. ​1 unit to 2 units

b. ​2 units to 3 units

c. ​5 units to 6 units

d. ​3units to 4 units

e. ​4 units to 5 units

Top Answer

e. ​4 units b. ​P &gt; AR &gt; MR d. ​greater than one but not infinite. d.... View the full answer

1 comment
  • thank you!
    • Kmarg216216
    • Jun 16, 2017 at 4:06pm

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