Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
12-121
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Learning Objective: 12-03 Explain how demand is seen by a pure monopoly.
Test Bank: II
Topic: Monopoly Demand
212.
Given a downward-sloping linear demand curve, if total revenue decreases as quantity
rises, marginal revenue must be
213.
Given a linear demand curve, at which combination of price and marginal revenue (P,
MR) is the price elasticity of demand greater than 1?
214.
A nondiscriminating monopolist will find that marginal revenue
12-122
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Accessibilit y: Keyboard Navigation
Blooms: Understand
D i ff i c u lt y: 02 Medium
Learning Objective: 12-03 Explain how demand is seen by a pure monopoly.
Test Bank: II
Topic: Monopoly Demand
215.
Assume that a monopolist faces a linear demand curve. If the firm is operating at an
output level where marginal revenue is positive, the firm
216.
Assume that a monopolist faces a linear demand curve and that it produces the output
quantity where total revenue is maximized. At that output, the
price elasticity of demand for
the product is
217.
A pure monopoly firm will never charge a price in the inelastic range of its demand
curve because lowering price to get into this region will
12-123
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
B.
decrease total revenue, increase total cost, and decrease profit.
C.
increase total revenue, decrease total cost, and decrease profit.
D.
decrease total revenue, total cost, and profit.
218.
The region of demand in which the monopolist will choose a price-output combination
will be
219.
In the inelastic portion of a monopolist's demand curve, an increase in price will
220.
Refer to the graph, which shows the revenue curves for a monopolist. What price should be
charged in order to maximize total revenue?
221.
Refer to the graph, which shows the revenue curves for a monopolist. Total revenue will be
greatest at what output level?
222.
Refer to the graph, which shows the revenue curves for a monopolist. The elastic portion of
the demand curve ranges from quantity
223.
Refer to the graph, which shows the revenue curves for a monopolist. At what output level is
demand inelastic?
224.
Refer to the graph, which shows the revenue curves for a monopolist. If it wants to sell
quantity Q1, it must charge at price
225.
Refer to the graph, which shows a total revenue curve for a monopolist. The firm's marginal
revenue curve must be
226.
Refer to the graph, which shows a total revenue curve for a monopolist. When the total
revenue curve reaches a maximum, marginal revenue is
227.
Refer to the graph, which shows a total revenue curve for a monopolist. If total revenue
declines as output expands, demand is
228.
Refer to the graph, which shows a total revenue curve for a monopolist. If total revenue falls
as output expands, marginal revenue is
229.
Refer to the graph, which shows a total revenue curve for a monopolist. The profit-
maximizing firm will produce in that output level where total
revenue is
230.
Refer to the graph, which shows a linear demand curve for a monopolist. Which of the
following statements is correct?
231.
Refer to the graph, which shows a linear demand curve for a monopolist. In which range of
the demand curve (or output quantity) will the firm
operate?
232.
233.
12-138
234.
Refer to the graphs of D and MR for a monopolist. We know that to maximize profits the firm
will set a price
235.
Price
Number of Baskets Sold
$20
3
18
5
16
7
14
10
12
15
10
30
The table shows the demand schedule facing Nina, a monopolist selling baskets. What is the
change in total revenue if she lowers the price from
$20 to $18?
236.
Price
Number of Baskets Sold
$20
3
18
5
16
7
14
10
12
15
10
30
The table shows the demand schedule facing Nina, a monopolist selling baskets. What is the
change in total revenue if she raises the price from $10
to $12?
12-140
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Blooms: Understand
D i ff i c u lt y: 02 Medium
Learning Objective: 12-03 Explain how demand is seen by a pure monopoly.
Test Bank: II
Topic: Monopoly Demand
237.
Which of the graphs shows the correct relationship between demand and marginal revenue?
