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Test Canvas : Self-Test Quiz – Chapter 13

Microeconom ics, 3e

Test Canvas: Self-Test Quiz – Chapter 13

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1. Multiple Choice: The U.S. beer industry is characteriz…

Question The U.S. beer industry is characterized by market power for only a few firms, with

the largest firm enjoying a 50% market share. One reason for this is economies of

scale. Economies of scale means that:

Answer

as beer production increases, costs increase significantly.

2. Multiple Choice: Which of the following is not an exam…

Question Which of the following is not an example of a barrier to entry?

Answer a copyright

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Points: 1

3. Multiple Choice: In today‘s U.S. economy, which of the…

Question In today‘s U.S. economy, which of the following industries has firms that have

acted as a monopoly for an extended period?

4. Multiple Choice: The monopolist’s marginal revenue cur…

Question The monopolist‘s marginal revenue curve is downward sloping because:

5. Multiple Choice: Suppose an industry initially had bee...

Points: 1

Question Suppose an industry initially had been perfectly competitive and then became a

monopoly. Which of the following would occur?

6. Multiple Choice: Suppose a monopoly firm has a constan…

Question Suppose a monopoly firm has a constant marginal cost equal to $8. Its demand

and marginal revenue curves are given, respectively, by the equations P = 40 – 2Q

and MR = 40 – 4Q. For this firm, the profit-maximizing price and output levels are:

7. Multiple Choice: Suppose a monopoly firm has a constan…

Question Suppose a monopoly firm has a constant marginal cost equal to $10. Its demand

and marginal revenue curves are given, respectively, by the equations P = 86 – 2Q

and MR = 86 – 4Q. For this firm, the profit-maximizing price and output levels are:

Points: 1

8. Multiple Choice: If the regulated price for a natural …

Question If the regulated price for a natural monopoly is set equal to the marginal cost:

Answer

the firm will produce the socially efficient level of output.

9. Multiple Choice: Often natural monopolies are regulate...

Question Often natural monopolies are regulated by:

Answer

setting the price equal to marginal cost, even if marginal cost is less than

average total cost.

Points: 1

10. Multiple Choice: If a monopoly practices perfect price…

Question If a monopoly practices perfect price discrimination, it will:

11. Multiple Choice: Which of the following statements abo...

Question Which of the following statements about monopoly is not correct?

12. Multiple Choice: If an airline chooses to practice pri...

Question If an airline chooses to practice price discrimination to increase profit, it will:

Answer charge higher fares to those with a more elastic demand.

Points: 1

13. Multiple Choice: One difference between monopoly and p...

Question One difference between monopoly and perfect competition is that:

Answer

a monopolist seeks to maximize profit; a perfect competitor does not.

14. Multiple Choice: Monopoly is a type of:

Question Monopoly is a type of:

Points: 1

15. Multiple Choice: A monopoly arises when there:

Question A monopoly arises when there:

16. Multiple Choice: Price discrimination is:

Question Price discrimination is:

17. Multiple Choice: If a monopolist engages in price disc...

Points: 1

Question If a monopolist engages in price discrimination, it is with the goal of:

18. Multiple Choice: Public ownership of a natural monopol…

Question Public ownership of a natural monopoly is intended to do all of the following

EXCEPT to:

19. Multiple Choice: A price ceiling imposed on a monopoly:

Question A price ceiling imposed on a monopoly:

Correct

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20. Multiple Choice: To persist, a monopoly must:

Question To persist, a monopoly must:

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