1)For a monopolist, average revenue is: A. more than marginal revenue at all output levels. B. less than price at all output levels. C. greater than price at all output levels. D. equal to marginal revenue at all output levels.
2)A profit-maximizing monopolist supplies the quantity at which: A. average revenue exceeds average cost by the greatest amount. B. marginal revenue exceeds marginal cost by the greatest amount. C. marginal revenue exceeds marginal cost by the smallest amount. D. total revenue exceeds total cost by the greatest amount.
3)Which of the following is true of the profit earned by a monopolist? A. Normal profit is ensured where marginal cost exceeds average revenue. B. Normal profit is ensured where price is equal to average total cost. C. Profit is maximized where marginal cost equals marginal revenue. D. Profit is maximized along the inelastic portion of the demand curve.
4)Which of the following factors explain the difference in long-run profits earned by a monopolist and a perfectly competitive firm? A. Perfectly competitive firms have high opportunity costs. B. There are no barriers to entry in perfect competition. C. Monopolists experience economies of scale. D. The demand for the monopolist's output is inelastic.
5)If the marginal cost curve shifts upward, a profit-maximizing monopolist that does not practice price discrimination is likely to respond in the short run by: A. keeping price constant and increasing output. B. raising price and increasing output. C. reducing price and increasing output. D. raising price and decreasing output.
6)When compared to firms in perfect competition, monopolists tend to charge: A. lower prices and offer lower quantities of output. B. lower prices and offer higher quantities of output. C. higher prices and offer higher quantities of output. D. higher prices and offer lower quantities of output.
7)The practice of charging different prices to different consumers for the same product is called: A. unit pricing. B. price discrimination. C. predatory pricing. D. arbitration.
8)If a perfectly competitive industry is monopolized, consumer surplus: A. becomes equal to producer surplus. B. can be expected to decrease. C. usually remains constant. D. becomes double of producer surplus.
9)If a monopolistically competitive firm is in long-run equilibrium and average cost equals $150, then the market price must be $150. True or False
10)The term âmonopolistic competitionâ: A. denotes an industry characterized by one seller of many differentiated products. B. denotes an industry characterized by many sellers of differentiated products. C. is used to describe perfect competition that has strong entry barriers. D. denotes an industry characterized by many sellers of homogeneous products.
1)For a monopolist, average revenue is: A. more than marginal revenue at all output levels. B. less than price at all output levels. C. greater than price at all output levels. D. equal to marginal revenue at all output levels.
2)A profit-maximizing monopolist supplies the quantity at which: A. average revenue exceeds average cost by the greatest amount. B. marginal revenue exceeds marginal cost by the greatest amount. C. marginal revenue exceeds marginal cost by the smallest amount. D. total revenue exceeds total cost by the greatest amount.
3)Which of the following is true of the profit earned by a monopolist? A. Normal profit is ensured where marginal cost exceeds average revenue. B. Normal profit is ensured where price is equal to average total cost. C. Profit is maximized where marginal cost equals marginal revenue. D. Profit is maximized along the inelastic portion of the demand curve.
4)Which of the following factors explain the difference in long-run profits earned by a monopolist and a perfectly competitive firm? A. Perfectly competitive firms have high opportunity costs. B. There are no barriers to entry in perfect competition. C. Monopolists experience economies of scale. D. The demand for the monopolist's output is inelastic.
5)If the marginal cost curve shifts upward, a profit-maximizing monopolist that does not practice price discrimination is likely to respond in the short run by: A. keeping price constant and increasing output. B. raising price and increasing output. C. reducing price and increasing output. D. raising price and decreasing output.
6)When compared to firms in perfect competition, monopolists tend to charge: A. lower prices and offer lower quantities of output. B. lower prices and offer higher quantities of output. C. higher prices and offer higher quantities of output. D. higher prices and offer lower quantities of output.
7)The practice of charging different prices to different consumers for the same product is called: A. unit pricing. B. price discrimination. C. predatory pricing. D. arbitration.
8)If a perfectly competitive industry is monopolized, consumer surplus: A. becomes equal to producer surplus. B. can be expected to decrease. C. usually remains constant. D. becomes double of producer surplus.
9)If a monopolistically competitive firm is in long-run equilibrium and average cost equals $150, then the market price must be $150. True or False
10)The term âmonopolistic competitionâ: A. denotes an industry characterized by one seller of many differentiated products. B. denotes an industry characterized by many sellers of differentiated products. C. is used to describe perfect competition that has strong entry barriers. D. denotes an industry characterized by many sellers of homogeneous products.
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