1.The demand curve facing a non-discriminating monopolist:

a. ​lies below its marginal revenue curve.

 

b. ​is perfectly price inelastic.

 

c. ​is the same as its average revenue curve.

 

d. ​is perfectly price elastic.

 

e. ​lies above its average revenue curve.

2.Irving R. Associates is granted a patent for a new product for which there are no close substitutes. Which of the following conditions must be true at the profit-maximizing output produced by this firm?

a. ​Marginal revenue is less than average variable cost.

 

b. ​Price is greater than average revenue.

 

c. ​Marginal revenue is equal to marginal cost.

 

d. ​Price is equal to marginal cost.

 

e. ​Average cost is less than marginal cost.

3.The table below shows the demand schedule for a monopolist. Marginal revenue associated with the sale of the fourth unit of output is _____.

​

Table 9.3

​

Price ($)          Quantity

90                        1

80                        2

70                        3

60                        4

50                        5

 

 

a. ​$210

 

b. ​$60

 

c. ​$10

 

d. ​$30

 

e. ​$240

4.Which of these is a key difference between a perfectly competitive firm and a monopolist that does not practice price discrimination?

a. ​A monopolist aims to maximize profits, while a perfectly competitive firm tries to maximize total revenue.

 

b. ​The marginal cost curve is U-shaped for a perfectly competitive firm but not for a monopolist.

 

c. ​Price is equal to average revenue for a perfectly competitive firm in equilibrium but not for a monopolist.

 

d. ​The average revenue curve is the demand curve for a perfectly competitive firm but not for a monopolist.

 

e. ​Price is equal to marginal revenue for a perfectly competitive firm in equilibrium but not for a monopolist.

 

5.A natural monopoly forms when:

a. ​one firm has control over the entire supply of a basic input required to produce the product.

 

b. ​the long-run average cost incurred by a firm declines as the firm expands output.

 

c. ​small firms merge to form larger firms.

 

d. ​one firm receives patent protection for certain basic production processes.

 

e. ​one firm's monopoly position is created and enforced by the government.

6.According to the information provided in the table below, marginal revenue from the sixth unit of output is:

​

Table 9.1

​

Price ($)

50

40

30

20

10

Quantity Demanded

2

3

4

5

6

a. ​$100.

 

b. ​$10.

 

c. ​‒$40.

 

d. ​$40.

 

e. ​$60.

SuperTutor

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Status NEW Posted 22 Jun 2017 01:06 AM My Price 8.00

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