Question 1

For a monopolist, the price of the product

Accepted Answer

A)  always equals the marginal revenue.
B)  is always less than the marginal revenue.
C)  exceeds the marginal revenue.
D)  always equals the marginal cost of the product.E) None of the above
F) All of the above C

Question 2

Use the following table to answer the question :

-If marginal cost were $22, how many units of output would this firm produce?

Accepted Answer

A)  1
B)  2
C)  3
D)  4
E)  5F) A) and B)
G) A) and C)

Question 3

Matt has a monopoly producing glass baseball bats. His company is called Matt's Glass Bats. As a result of his monopoly position

Accepted Answer

A)  he is guaranteed a profit.
B)  he will shatter his competition.
C)  his average total costs will be lower than the price he charges.
D)  he is not guaranteed of profit, because monopoly power alone will not lead to business success.E) A) and B)
F) A) and C)

Question 4

Use the following Figure to answer the question :

-If the firm is minimizing losses, total loss will be

Accepted Answer

A)  OMKE.
B)  EKQN.
C)  NQHG.
D)  FIHG.
E)  OLJF.F) B) and E)
G) None of the above

Question 5

The necessary condition(s)  to realize economies of scale include

Accepted Answer

A)  having the financial resources for the high capital costs.
B)  having sufficient demand for the product.
C)  both financial resources for the high capital costs and sufficient demand for the product.D) A) and B)
E) None of the above

Question 6

Use the following figure to answer the question :

-If the firm is maximizing profits, total profit will be

Accepted Answer

A)  LKJM.
B)  NIKL.
C)  MJKL.
D)  OFKL.
E)  OFJM.F) A) and D)
G) A) and B)

Question 7

Use the following Figure to answer the question :

-If this firm were a perfect competitor, at what output would it produce in the long run?

Accepted Answer

A)  OP
B)  OM
C)  OL
D)  None of the choices are correct.E) B) and D)
F) B) and C)

Question 8

Which one of these is not a natural monopoly?

Accepted Answer

A)  A local electric company
B)  A local natural gas company
C)  A local cable TV company
D)  All of these choices are examples of natural monopolies.E) A) and B)
F) A) and D)

Question 9

If the firm were a perfect competitor in the long run, how much would its output be?

Accepted Answer

The answer of If the firm were a perfect competitor...

Question 10

In order to sell additional units the monopolist must ___________ the price.

Accepted Answer

The answer of In order to sell additional units the...

Question 11

If the firm were a perfect competitor in the long run, how much would its price be?

Accepted Answer

The answer of If the firm were a perfect competitor...

Question 12

A monopoly firm selling moustache wax to vain men in a small town is currently maximizing profits by charging a price of $5. It follows that the marginal cost of moustache wax

Accepted Answer

A)  is greater than $5.
B)  is equal to $5.
C)  is less than $5.
D)  None of these choices are true.E) A) and B)
F) A) and C)

Question 13

When an industry is a natural monopoly

Accepted Answer

A)  the economies of scale in it are very great.
B)  it would be most efficient to have several (or many)  firms competing to supply the market.
C)  it has a perfectly elastic industry demand curve.
D)  the typical firm's marginal cost curve is everywhere above its average cost curve.E) A) and D)
F) A) and C)

Question 14

Monopoly profit

Accepted Answer

A)  equals (price - AT
C)   times quantity sold.
B)  equals price times quantity sold.
C)  exists only in the short run.
D)  exists because no entry barriers exist.E) A) and B)
F) A) and C) A

Question 15

Use the following table to answer the question :

-If the marginal cost were $22, the firm would maximize its profit at _____ unit(s)  of output.

Accepted Answer

A)  1
B)  2
C)  3
D)  4
E)  5F) B) and D)
G) A) and D)

Question 16

(a) Using the data from graph, calculate the firm's total profit. (b) If the firm operates at optimum efficiency, how much will its output be? (c) If the firm were a perfect competitor, how much will its price be in the long run?

Accepted Answer

(a) Total Profit = (Price - AT...

Question 17

In late 2008, Wal-Mart agreed to settle 63 of the over 70 lawsuits filed against them across the United States, paying out ____________ million.

Accepted Answer

A)  less than $125
B)  between $125 and $250
C)  between $352 and $640
D)  over $800E) A) and C)
F) None of the above C

Question 18

Use the following Table to answer the question :

-The marginal revenue that would be derived from producing a fourth unit of output is

Accepted Answer

A)  $30
B)  $24
C)  $21
D)  $18
E)  $12F) B) and D)
G) B) and C)

Question 19

A monopolist may make a profit

Accepted Answer

A)  only in the short run.
B)  only in the long run.
C)  in both the short and long run.
D)  in neither the short nor long run.E) A) and B)
F) B) and D)

Question 20

Which statement is true?

Accepted Answer

A)  The monopolist produces at an output level that is at peak efficiency.
B)  The monopolist is guaranteed to make a profit because they have no competition.
C)  The monopolist can get preferential tax breaks because of its political influence.
D)  Overall, monopolists are very efficient.E) B) and C)
F) All of the above

Exam 10: Monopoly

For a monopolist, the price of the product

Correct AnswerverifiedC

Use the following table to answer the question : -If marginal cost were $22, how many units of output would this firm produce?

Correct AnswerverifiedShow Answer

Matt has a monopoly producing glass baseball bats. His company is called Matt's Glass Bats. As a result of his monopoly position

Correct AnswerverifiedShow Answer

Use the following Figure to answer the question : -If the firm is minimizing losses, total loss will be

Correct AnswerverifiedShow Answer

The necessary condition(s) to realize economies of scale include

Correct AnswerverifiedShow Answer

Use the following figure to answer the question : -If the firm is maximizing profits, total profit will be

Correct AnswerverifiedShow Answer

Use the following Figure to answer the question : -If this firm were a perfect competitor, at what output would it produce in the long run?

Correct AnswerverifiedShow Answer

Which one of these is not a natural monopoly?

Correct AnswerverifiedShow Answer

If the firm were a perfect competitor in the long run, how much would its output be?

Correct AnswerverifiedShow Answer

In order to sell additional units the monopolist must ___________ the price.

Correct AnswerverifiedShow Answer

If the firm were a perfect competitor in the long run, how much would its price be?

Correct AnswerverifiedShow Answer

A monopoly firm selling moustache wax to vain men in a small town is currently maximizing profits by charging a price of $5. It follows that the marginal cost of moustache wax

Correct AnswerverifiedShow Answer

When an industry is a natural monopoly

Correct AnswerverifiedShow Answer

Monopoly profit

Correct AnswerverifiedA

Use the following table to answer the question : -If the marginal cost were $22, the firm would maximize its profit at _____ unit(s) of output.

Correct AnswerverifiedShow Answer

(a) Using the data from graph, calculate the firm's total profit. (b) If the firm operates at optimum efficiency, how much will its output be? (c) If the firm were a perfect competitor, how much will its price be in the long run?

Correct Answerverified(a) Total Profit = (Price - AT...View AnswerShow Answer

In late 2008, Wal-Mart agreed to settle 63 of the over 70 lawsuits filed against them across the United States, paying out ____________ million.

Correct AnswerverifiedC

Use the following Table to answer the question : -The marginal revenue that would be derived from producing a fourth unit of output is

Correct AnswerverifiedShow Answer

A monopolist may make a profit

Correct AnswerverifiedShow Answer

Which statement is true?

Correct AnswerverifiedShow Answer

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C

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A

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(a) Total Profit = (Price - AT...
View Answer

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C

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