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275.
If the industry depicted in this graph were purely competitive, then the market price would be
276.
Based on the graph, what is the difference between the purely competitive equilibrium level
of output and the pure monopoly equilibrium level of
output?
277. Compared to the purely competitive industry, a pure monopoly
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written consent of McGraw-Hill Education.
entice competitors into the market.
278.
If the industry depicted in this graph were purely competitive, the output quantity would be
279.
If the industry depicted in this graph operated as a pure monopoly, the output quantity would
be
280.
If the industry depicted in this graph were purely competitive, the market price would be
281.
If the industry depicted in this graph were a pure monopoly, the product price would be
282.
If the industry depicted in this graph were served by a pure monopoly, the price and output
quantity would be
283.
Refer to the provided graph for an industry. If the industry was initially a monopoly, but the
monopolist was broken up into a large number of small,
purely competitive firms and
production cost-curves remained unchanged, then market price and industry output would be
284.
Society suffers a deadweight loss in a pure-monopoly market because
12-169
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written consent of McGraw-Hill Education.
Topic: Economic Effects of Monopoly
285.
Marginal costs of a producer may be very small due to its product's ability to satisfy a
large number of consumers at the same time. This
characteristic of a product is called
286.
With nonrivalrous consumption, such as in the case of online music and movies, as more
consumers buy the product,
287.
When the value of a product to each user, including existing users, increases due to an
increase in the total number of users—as in the case of
Facebook—we refer to this as
12-170
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written consent of McGraw-Hill Education.
Blooms: Understand
D ifficulty: 02 Medium
Learning Objective: 12-05 Discuss the economic effects of monopoly.
Test Bank: II
Topic: Economic Effects of Monopoly
288.
Network effects and simultaneous consumption tend to foster the development of
289.
X-inefficiency is said to occur when a monopolist's
290.
Possible reasons for X-inefficiency include the following, except
12-171
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Acc ess ibi lit y: Keyboard Navigation
Blooms: Understand
D ifficulty: 02 Medium
Learning Objective: 12-05 Discuss the economic effects of monopoly.
Test Bank: II
Topic: Economic Effects of Monopoly
291.
Which of the following statements is correct?
292.
Any activity designed to transfer income or wealth to a particular individual or firm at
society's expense is called
293.
Assume that the owners of the only gambling casino in Wisconsin spend large sums of
money lobbying state government officials to protect their
gambling monopoly. Economists
refer to these expenditures as
294.
Many economists agree that government should deal with monopolists on a case-by-case
basis. Which of the following is not a government policy
option?
295.
If a monopoly is faced with competition from foreign multinational corporations or from
potential new entrants, then it would probably
12-173
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Acc ess ibi lit y: Keyboard Navigation
Blooms: Understand
D ifficulty: 02 Medium
Learning Objective: 12-05 Discuss the economic effects of monopoly.
Test Bank: II
Topic: Economic Effects of Monopoly
296.
The economic incentive for price discrimination is based upon
297.
To practice long-run price discrimination, a monopolist must
298.
Which of the following statements is true of price discrimination?
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written consent of McGraw-Hill Education.
discriminate.
C.
Successful price discrimination will generally result in a lower level of output than would
be the case under a single-price monopoly.
D.
Successful price discrimination occurs when there are differences in the costs of
producing for different groups of buyers.
299.
Which is not true of price discrimination?
300.
Which would definitely not be an example of price discrimination?
12-175
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Acc ess ibi lit y: Keyboard Navigation
Blooms: Understand
D ifficulty: 02 Medium
Learning Objective: 12-06 Describe why a monopolist might prefer to charge different prices
in different markets.
Test Bank: II
Topic: Price Discrimination
301.
Which case best represents a case of price discrimination?
302.
Which is the best example of price discrimination?
303.
Which is true of a price-discriminating pure monopolist?
304.
Price discrimination is more common in service industries because
305.
A price-discriminating monopolist will follow a system where
12-177
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Learning Objective: 12-06 Describe why a monopolist might prefer to charge different prices
in different markets.
Test Bank: II
Topic: Price Discrimination
306.
Consumers who clip and redeem discount coupons
307.
Electric companies generally practice price discrimination and charge higher prices for
electricity used for illumination and lower prices for
electricity used for heat. These lower
prices for electric heating result primarily from
308.
If a price-discriminating monopolist sells the same product in two markets but charges a
higher price in market X and a lower price in market Y,
the pricing difference indicates that
demand is
309.
Even though many ballparks practice price discrimination between adults and children
in selling tickets, such discrimination is not applied at the
concession stands because
310.
Refer to the cost and demand data for a pure monopolist. Suppose that this monopoly is
subjected to a regulatory commission. If the commission
seeks to achieve the most efficient
allocation of resources for this industry, it should set the socially optimal price at
311. One argument for having the government regulate natural monopolies is that without
regulation,
