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Microeconomic Exam #2

38 Questions  I  By Hcarmikel
Economics Quizzes & Trivia
Chapter 9 Monopoly

  
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Question Excerpt

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1.  A monopolist is
A.
B.
C.
D.
E.
2.  Which of the following is true of monopoly?
A.
B.
C.
D.
E.
3.  Which of the following could be true of perfect competition but not of monopoly?
A.
B.
C.
D.
E.
4.  Which of the following prevents potential competitors from entering a monopolist's market?
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B.
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E.
5.   In the monopoly market structure, new firms
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B.
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D.
E.
6.  Natural monopolies form when
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7.  A natural monopoly results when a firm has
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8.  The demand curve a monopolist uses in making an output decision is
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9.  Which of the following is true of marginal revenue for a monopolist that charges a single price
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B.
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D.
E.
10.  The demand curve facing a single-price monopolist
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D.
11.  Suppose that a monopolist must choose between two points on its demand curve: it can sell 100 units for $3 each, or it can sell 140 units for $2 each. Which of the following is true?
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B.
C.
D.
E.
12.  A profit-maximizing monopolist
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13.  A profit-maximizing monopolist never produces along the _____ portion of the demand curve because marginal revenue is _____ there.
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14.  Negative marginal revenue means that
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15.   As a monopolist increases the quantity of output produced, what happens to price (P) and marginal revenue (MR)?
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16.  For a nondiscriminating monopolist, describe the relationship between market price (P), average revenue (AR), and marginal revenue (MR).
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17.  Which of the following is not true of monopolists?
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D.
E.
18.  Which of the following is true at the profit-maximizing quantity for both a perfectly competitive firm and a monopoly
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B.
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19.  A monopolist
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20.  A monopolist earning short-run economic profit determines that at its present level of output, marginal revenue is $23 and marginal cost is $30. Which of the following should the firm do to increase profit?
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B.
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21.  Irving R. Associates is granted a patent for a new product for which there are no close substitutes. Which of the following must be true at the profit-maximizing quantity?
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B.
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D.
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22.  One likely result of monopoly power is
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23.  If marginal cost is positive, which of the following is true?
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D.
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24.  Suppose a monopolist cannot price discriminate. To maximize profit, it will
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25.  In the short run, how will a profit-maximizing monopolist react if its marginal cost suddenly increases? It will
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26.  Suppose the only professional hockey team within 500 miles is the Salt Lake City Slappers team. If the State of Utah imposes a profits tax on sports teams, the Slappers will
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27.  A profit-maximizing monopolist produces an output level at which
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28.  In the short run, a monopolist will always shut down when
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29.  A monopolist has no supply curve because
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30.  Barriers to entry
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31.  Firms can earn economic profits even in the long run if
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32.  An important difference between a perfectly competitive firm and a monopolist is that
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33.  Nondiscriminating monopoly is similar to perfect competition in that
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34.  Compared to the productive efficiency of a perfectly competitive firm, a monopolist tends to be
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35.  If a perfectly competitive industry is monopolized, consumer surplus
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36.  The welfare loss of monopoly is also called
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37.  For which of the following products would price discrimination be easiest?
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38.  Which of the following is a major criticism of a monopoly as a cause of allocative inefficiency?
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B.
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D.
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