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45.
In Figure 24.2, the profit-maximizing monopolist will earn a profit per unit of
46.
In Figure 24.2, total revenue at the profit-maximizing rate of output is
47.
In Figure 24.2, total profit at the profit-maximizing rate of output is
48.
In Figure 24.2, total profit at the profit-maximizing rate of output is
49.
In Figure 24.2, total cost at the profit-maximizing rate of output is
50.
Refer to Figure 24.3. Suppose this good could somehow be produced at no cost (that is, the total cost at
any level of output was zero). This single-price monopoly firm would maximize profit by
51.
Refer to Figure 24.3. Which of the following statements is true about the price elasticity of demand at price P2?
52.
Refer to Figure 24.3. Which of the following statements is true about the price elasticity of demand at price P3?
53. A barrier to entry is
A. A law established by the government to protect new industries.
54. Which of the following is likely to occur if a monopoly suddenly loses its ability to deny potential competitors
entry into the market?
55. Which of the following is a barrier to entry in a monopoly market?
A. Economic profits greater than zero for the monopolist.
56. Which of the following is a barrier to entry in a monopoly market?
57. A firm can take advantage of economies of scale through
58. Reductions in minimum average costs that come about through increases in the size of plants and
equipment are called
A. Barriers to entry.
59. Any firm that has economies of scale will
60. Like a competitive industry, a monopoly must
61. The price charged by a profit-maximizing monopolist occurs
62. A monopolist will not use marginal cost pricing because at that output
63. Which of the following is an argument in favor of a competitive market structure rather than monopoly?
A. Monopolies have greater ability to pursue research and design.
64. There is an inherent tendency of a monopoly industry to
65. Assume a monopoly confronts the same costs and demand as a competitive industry. In this case,
the monopolist produces
A. The same output and charges the same price as the competitive industry.
66. A monopoly
67. A monopoly
A. Maximizes profits at the output level where MR > MC.
68. A monopoly realizes larger profits than a comparable competitive market by
69. At equilibrium in a monopoly, economic profits will most likely be
70. Compared with a competitive market with the same cost and market demand circumstances, a monopolist
has
A. Less pressure to reduce costs and less reason to improve quality.
71. The ultimate market constraint on the exercise of market power
72. All of the following are limitations on the market power of a monopoly except
73. Price discrimination is best defined as
74. Price discrimination allows a producer to
A. Reap the highest possible average price for the quantity supplied.
75. Price discrimination does not allow a producer to
A. Obtain greater total revenue.
76. Price-discriminating firms charge higher prices to those who
77. Price-discriminating firms that sell in two markets will charge higher prices in the market, ceteris
paribus, A. With a higher positive cross-price elasticity of demand with respect to substitutes.
78. If tourists are charged a much higher price than the natives of a country for exactly the same item, what kind of
pricing is involved?
A. Monopoly pricing.
79. Which of the following markets best illustrates the practice of price discrimination?
A. The airline market.
80. A monopolist that does not practice price discrimination should never produce in the
81. Which of the following is not an example of price discrimination by the only movie theater in town?
82. A monopoly can have a high degree of market power because of all but
83. A patent gives a firm the exclusive right to produce a product for
84. Which of the following is a barrier to entry into a monopoly market?
85. Which of the following does not contribute to a firm maintaining a monopoly?
86. Which of the following contributes to a firm maintaining a monopoly?
A. Exclusive franchises.
