1.The revenue-maximizing output for a non-discriminating monopolist represented in the table given below is _____.
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
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:
d. greater than one but not infinite.
e. less than zero.
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.
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
e. 4 units b. P > AR > MR d. greater than one but not infinite. d.... View the full answer
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- Jun 16, 2017 at 4:06pm