Explore the strategies of monopolists in 'The Ultimate Quiz On Microeconomics Part II'. This quiz assesses understanding of profit maximization, pricing strategies, and market behaviors, essential for students and professionals in economics.
-996
1,296
1,568
0
None of the above
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0
72
22
56
None of the above
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$0
$20
$40
$10
This problem cannot be answered without knowing the marginal cost
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Positive
Negative
Zero
Indeterminate from the given information.
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0
90
95
100
None of the above
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Lost consumer surplus from monopolistic pricing.
Socially unproductive amounts of money spent to obtain or acquire a monopoly.
Net loss in consumer and producer surplus due to a monopolist's pricing strategy/policy.
None of the above.
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Q3
Q1
Q2
Q4
Q5
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25
0
50
60
125
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$95.00
$5.00
$52.50
$10.00
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The firm should increase output
The firm should cut output.
This is typical for a monopolist; output should not be altered.
None of the above is necessarily correct.
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Maximized revenue.
Maximized profit.
Minimized profit.
Minimized cost.
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$4512.50
$4987.00
$475.00
$5.00
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0
90
95
100
None of the above
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Inefficiency would remain, but not because output would be lower than under competitive conditions.
Inefficiency would remain because output would be lower than under competitive conditions.
Efficiency would be obtained because output would be increased to the competitive level.
Efficiency would be obtained because output would be increased and profits removed.
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$20
This problem cannot be answered without knowing the marginal cost.
$0
$40
$10
0DEQm
BDEF
ADEG
CDE
None of the above
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Inefficiency would remain because output would be lower than under competitive conditions.
Inefficiency would remain, but not because output would be lower than under competitive conditions.
Efficiency would be obtained because output would be increased to the competitive level.
Efficiency would be obtained because output would be increased and profits removed.
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32
42
72
4
22
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Infinitely elastic.
Inelastic, but not completely inelastic
Unit elastic
Elastic, but not infinitely elastic
Completely inelastic
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Q = 1000 P = 94 cents Profits = 94,000 cents
Q = 1150 P = 83 cents Profits = 1450 cents
Q = 1150 P = 90 cents Profits = 9500 cents
Q = 1000 P = 94 cents Profits = 9000 cents
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Q = 15 P = 90 Profits = 0
Q = 15 P = 60 Profits = 350
Q = 11.5 P = 90 Profits = 415
Q = 11.5 P = 60 Profits = 0
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P3
P2
P1
P4
None of the above
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P1
P4
P3
P2
None of the above
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Natural monopolies cannot be regulated.
Natural monopolies are in the markets for natural resources (like crude oil and coal).
For natural monopolies, average cost is always increasing.
For natural monopolies, marginal cost is always below average cost.
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Q = 1000 P = 80 cents Profits = 80,000 cents
Q = 1500 P = 80 cents Profits = 150,000 cents
Q = 1500 P = 90 cents Profits = 20,000 cents
Q = 1500 P = 90 cents Profits = 135,000cents
0
90
95
100
None of the above
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$4.00
$8.00
$6.00
$12
None of these
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Equal to the monopoly profit maximizing level.
Equal to the competitive level.
Greater than the competitive level.
Greater than the monopoly profit maximizing level and less than the competitive level.
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Q = 11 P = 60 Profits = 410.50
Q = 10.5 P = 60 Profits = 490
Q = 11.25 P = 90 Profits = 406.50
Q = 11.25 P = 60 Profits = 406.50
Q = 11.25 P = 67.5 Profits = 406.25
Quiz Review Timeline (Updated): Mar 21, 2023 +
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