Question 1

​The best option to control the behavior of a natural monopoly is to use public ownership of the monopoly.

Accepted Answer

A) True 
 B)False

Question 2

A movie theater can increase its profits through price discrimination by charging a higher price to adults and a lower price to children if it

Accepted Answer

A)  only shows G-rated movies.
B)  has no monopoly pricing power.
C)  cannot easily distinguish between the two groups of customers.
D)  can prevent children from buying the lower-priced tickets and selling them to adults.E) B) and C)
F) A) and D)

Question 3

A key for a monopoly that wants to practice price discrimination is to be able to control the resale of its product.
​

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is not one of the ways that antitrust laws promote competition?

Accepted Answer

A)  Antitrust laws allow the government to prevent mergers.
B)  Antitrust laws allow the government to break up big companies into smaller ones.
C)  Antitrust laws prevent companies from coordinating their activities in ways that make markets less competitive.
D)  Antitrust laws allow the government to shut down a firm if the government believes the firm has monopoly power.E) B) and C)
F) A) and D)

Question 5

What are the three main sources of barriers to entry for monopolies?

Accepted Answer

monopoly resources
g...

Question 6

The profit-maximization problem for a monopolist differs from that of a competitive firm in which of the following ways?

Accepted Answer

A)  A competitive firm maximizes profit at the point where marginal revenue equals marginal cost; a monopolist maximizes profit at the point where marginal revenue exceeds marginal cost.
B)  A competitive firm maximizes profit at the point where average revenue equals marginal cost; a monopolist maximizes profit at the point where average revenue exceeds marginal cost.
C)  For a competitive firm, marginal revenue at the profit-maximizing level of output is equal to marginal revenue at all other levels of output; for a monopolist, marginal revenue at the profit-maximizing level of output is smaller than it is for larger levels of output.
D)  For a profit-maximizing competitive firm, thinking at the margin is much more important than it is for a profit-maximizing monopolist.E) B) and C)
F) All of the above

Question 7

If the ABC company owns the exclusive rights to mine land in Afghanistan for Lapis Lazuli, a rare stone used in jewelry which is found only in Afghanistan, the company benefits from a barrier to entry.

Accepted Answer

A) True 
 B)False

Question 8

When a firm operates under conditions of monopoly, its price is

Accepted Answer

A)  not constrained.
B)  constrained by marginal cost.
C)  constrained by demand.
D)  constrained only by its social agenda.E) C) and D)
F) All of the above

Question 9

A monopolist's supply curve is horizontal.

Accepted Answer

A) True 
 B)False

Question 10

The De Beers Diamond company is not worried about differentiating its product from all other gemstones.

Accepted Answer

A) True 
 B)False

Question 11

Figure 15-10
​  ​
-Refer to Figure 15-10. If a regulator requires the firm to charge an average cost price, what is the amount of profit or loss earned by the firm?

Accepted Answer

The answer of Figure 15-10
​  ​
-Refer to Figure 15-10....

Question 12

A firm cannot price discriminate if

Accepted Answer

A)  it has declining marginal revenue.
B)  it operates in a competitive market.
C)  buyers only reveal the price they are willing to pay for the product.
D)  it has a constant marginal cost.E) B) and C)
F) A) and C)

Question 13

Figure 15-9
​  ​
-Refer to Figure 15-9. How much consumer surplus results if this single-price monopolist profit-maximizes?

Accepted Answer

The answer of Figure 15-9
​  ​
-Refer to Figure 15-9....

Question 14

A monopolist earns higher profits by charging one price than by practicing price discrimination.

Accepted Answer

A) True 
 B)False

Question 15

Figure 15-7 
-Refer to Figure 15-7. To maximize its profit, a monopolist would choose which of the following outcomes?

Accepted Answer

A)  Q = 30 and P = 30
B)  Q = 30 and P = 60
C)  Q = 45 and P = 45
D)  Q = 60 and P = 30E) A) and B)
F) A) and C)

Question 16

Scenario 15-3
Vincent operates a scenic tour business in Boston. He has one bus which can fit 50 people per tour and each tour lasts 2 hours. His total cost of operating one tour is fixed at $450. Vincent's cost is not reduced if he runs a tour with a partially full bus. While his cost is the same for all tours, Vincent charges each passenger his/her willingness to pay: adults $18 per trip, children $10 per trip, and senior citizens $12 per trip. At those rates, on a typical day Vincent's demand is:
 $$\begin{array} { | l | l | l | } 
\hline \text { Passen ger Type } & \text { Willingness to Pay } & \text { Demand per day } \
\hline \text { Adults } & \$ 18 & 70 \
\hline \text { Children } & \$ 10 & 25 \
\hline \text { Senior Citizens } & \$ 12 & 55 \
\hline
\end{array}$$ Assume that Vincent's customers are always available for the tour; therefore, he can fill his bus for each tour as long as there is sufficient total demand for the day.
-Refer to Scenario 15-3. Vincent uses a pricing practice called

Accepted Answer

price disc...

Question 17

A monopolist maximizes profit by producing an output level where marginal cost equals price.

Accepted Answer

A) True 
 B)False

Question 18

Figure 15-12
​  ​
-Refer to Figure 15-12. If a regulator requires this firm to charge a fair return price, which letter represents the amount of output it will produce?

Accepted Answer

The answer of Figure 15-12
​  ​
-Refer to Figure 15-12....

Question 19

A common solution to monopoly in European countries is public ownership.

Accepted Answer

A) True 
 B)False

Question 20

For a monopoly, marginal revenue is often greater than the price it charges for its good.

Accepted Answer

A) True 
 B)False

Exam 15: Monopoly

A monopolist maximizes profit by producing an output level where marginal cost equals price.

Correct Answer
verified

Correct Answer
verified
price disc...
View Answer

Figure 15-12 -Refer to Figure 15-12. If a regulator requires this firm to charge a fair return price, which letter represents the amount of output it will produce?

Correct Answer
verified

A monopolist's supply curve is horizontal.

Correct Answer
verified

A key for a monopoly that wants to practice price discrimination is to be able to control the resale of its product.

Correct Answer
verified

For a monopoly, marginal revenue is often greater than the price it charges for its good.

Correct Answer
verified

What are the three main sources of barriers to entry for monopolies?

Correct Answer
verified
monopoly resources
g...
View Answer

A firm cannot price discriminate if

Correct Answer
verified

Figure 15-7 -Refer to Figure 15-7. To maximize its profit, a monopolist would choose which of the following outcomes?

Correct Answer
verified

Which of the following is not one of the ways that antitrust laws promote competition?

Correct Answer
verified

If the ABC company owns the exclusive rights to mine land in Afghanistan for Lapis Lazuli, a rare stone used in jewelry which is found only in Afghanistan, the company benefits from a barrier to entry.

Correct Answer
verified

When a firm operates under conditions of monopoly, its price is

Correct Answer
verified

The best option to control the behavior of a natural monopoly is to use public ownership of the monopoly.

Correct Answer
verified

A movie theater can increase its profits through price discrimination by charging a higher price to adults and a lower price to children if it

Correct Answer
verified

Figure 15-9 -Refer to Figure 15-9. How much consumer surplus results if this single-price monopolist profit-maximizes?

Correct Answer
verified

The profit-maximization problem for a monopolist differs from that of a competitive firm in which of the following ways?

Correct Answer
verified

Figure 15-10 -Refer to Figure 15-10. If a regulator requires the firm to charge an average cost price, what is the amount of profit or loss earned by the firm?

Correct Answer
verified

The De Beers Diamond company is not worried about differentiating its product from all other gemstones.

Correct Answer
verified

A monopolist earns higher profits by charging one price than by practicing price discrimination.

Correct Answer
verified

A common solution to monopoly in European countries is public ownership.

Correct Answer
verified

Exam 15: Monopoly

A monopolist maximizes profit by producing an output level where marginal cost equals price.

Correct AnswerverifiedShow Answer

Correct Answerverifiedprice disc...View AnswerShow Answer

Figure 15-12 ​ ​ -Refer to Figure 15-12. If a regulator requires this firm to charge a fair return price, which letter represents the amount of output it will produce?

Correct AnswerverifiedShow Answer

A monopolist's supply curve is horizontal.

Correct AnswerverifiedShow Answer

A key for a monopoly that wants to practice price discrimination is to be able to control the resale of its product. ​

Correct AnswerverifiedShow Answer

For a monopoly, marginal revenue is often greater than the price it charges for its good.

Correct AnswerverifiedShow Answer

What are the three main sources of barriers to entry for monopolies?

Correct Answerverifiedmonopoly resourcesg...View AnswerShow Answer

A firm cannot price discriminate if

Correct AnswerverifiedShow Answer

Figure 15-7 -Refer to Figure 15-7. To maximize its profit, a monopolist would choose which of the following outcomes?

Correct AnswerverifiedShow Answer

Which of the following is not one of the ways that antitrust laws promote competition?

Correct AnswerverifiedShow Answer

If the ABC company owns the exclusive rights to mine land in Afghanistan for Lapis Lazuli, a rare stone used in jewelry which is found only in Afghanistan, the company benefits from a barrier to entry.

Correct AnswerverifiedShow Answer

When a firm operates under conditions of monopoly, its price is

Correct AnswerverifiedShow Answer

​The best option to control the behavior of a natural monopoly is to use public ownership of the monopoly.

Correct AnswerverifiedShow Answer

A movie theater can increase its profits through price discrimination by charging a higher price to adults and a lower price to children if it

Correct AnswerverifiedShow Answer

Figure 15-9 ​ ​ -Refer to Figure 15-9. How much consumer surplus results if this single-price monopolist profit-maximizes?

Correct AnswerverifiedShow Answer

The profit-maximization problem for a monopolist differs from that of a competitive firm in which of the following ways?

Correct AnswerverifiedShow Answer

Figure 15-10 ​ ​ -Refer to Figure 15-10. If a regulator requires the firm to charge an average cost price, what is the amount of profit or loss earned by the firm?

Correct AnswerverifiedShow Answer

The De Beers Diamond company is not worried about differentiating its product from all other gemstones.

Correct AnswerverifiedShow Answer

A monopolist earns higher profits by charging one price than by practicing price discrimination.

Correct AnswerverifiedShow Answer

A common solution to monopoly in European countries is public ownership.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
price disc...
View Answer

Figure 15-12 -Refer to Figure 15-12. If a regulator requires this firm to charge a fair return price, which letter represents the amount of output it will produce?

Correct Answer
verified

Correct Answer
verified

A key for a monopoly that wants to practice price discrimination is to be able to control the resale of its product.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
monopoly resources
g...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

The best option to control the behavior of a natural monopoly is to use public ownership of the monopoly.

Correct Answer
verified

Correct Answer
verified

Figure 15-9 -Refer to Figure 15-9. How much consumer surplus results if this single-price monopolist profit-maximizes?

Correct Answer
verified

Correct Answer
verified

Figure 15-10 -Refer to Figure 15-10. If a regulator requires the firm to charge an average cost price, what is the amount of profit or loss earned by the firm?

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified