978-1259723223 Test Bank TBChap012 Part 9

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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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

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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

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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

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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

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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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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?

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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

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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,