1.The revenue-maximizing output for a non-discriminating monopolist represented in the table given below is _____.

Table 9.4

​

Quantity    Price ($)     Total cost ($)

0           10               10

1            9               12

2            8               19

3            7               23

4            6               31

5            5               46

6            4               69

7            3               99

​

a. ​2 units

 

b. ​5 units

 

c. ​0 units

 

d. ​3 units

e. ​4 units

 

2. Which of the following equations describes the relationship between market price (P), average revenue (AR), and marginal revenue (MR) for a non-discriminating monopolist?

a. ​P = AR > MR

 

b. ​P > AR > MR

 

c. ​P > AR = MR

 

d. ​P = AR = MR

 

e. ​P = AR < MR

3.

​A monopolist can either sell 100 units for $3 each or sell 160 units for $2 each. This implies that, for the given range of output, elasticity of demand for the monopolist’s product is:

a. ​infinite. 

 

b. ​one.

 

c. ​zero.

 

d. ​greater than one but not infinite.

 

e. ​less than zero.

4.

​Which of the following is true for a monopolist that engages in perfect price discrimination?

a. ​Perfect price discrimination restricts the total output produced by the monopolist.

 

b. ​Perfect price discrimination creates a deadweight loss.

 

c. ​Perfect price discrimination allows the monopolist to just break even and transfers the gain to consumers.

 

d. ​Perfect price discrimination allows the monopolist to reap the entire gains from production.

 

e. ​Perfect price discrimination results in the maximization of consumer surplus.

 

5.Identify a distinguishing feature of monopoly.

a. ​There are many firms in a monopolized industry.

 

b. ​A monopolist is a price taker.

 

c. ​A monopolist faces a horizontal demand curve.

 

d. ​There are no close substitutes for a monopolist's product.

 

e. ​There are no barriers to entry in a monopolized market.

6.Based on the information given in the table below, identify the range of output for which demand is unit elastic.

​

Table 9.2

Quantity

0

1

2

3

4

5

6

Price$

7

6

5

4

3

2

1

​

a. ​1 unit to 2 units

 

b. ​2 units to 3 units

 

c. ​5 units to 6 units

 

d. ​3units to 4 units

 

e. ​4 units to 5 units

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Status NEW Posted 22 Jun 2017 01:06 AM My Price 7.00

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