Micro Chapter 15

question

Refer to Figure 15-2. Which of the following statements is correct?

answer

A. Panel C represents the typical demand curve for a perfectly competitive firm, and Panel B represents the typical demand curve for a monopoly.

question

Refer to Figure 15-4. A profit-maximizing monopoly will produce anoutput level of

answer

C. Q3.

question

Suppose most people regard emeralds, rubies, and sapphires as close substitutes for diamonds. Then DeBeers, a large diamond company, has

answer

B. less market power than it would otherwise have.

question

A monopoly market

answer

C. generally fails to maximize total economic well-being.

question

Because many good substitutes exist for a competitive firm's product, the demand curve that it faces is

answer

C. perfectly elastic.

question

For a monopoly, the level of output at which marginal revenue equals zero is also the level of output at which

answer

C. total revenue is maximized.

question

Refer to Figure 15-5. What price will the monopolist charge?

answer

B. B

question

Which of the following are necessary characteristics of a monopoly? (i) The firm is the sole seller of its product. (ii)The firm's product does not have close substitutes. (iii) The firm generates a large economic profit. (iv) The firm is located in a small geographic market.

answer

A. (i) and (ii) only

question

Refer to Figure 15-4. A profit-maximizing monopoly's total revenue isequal to

answer

A. P4 x Q3.

question

For a monopoly,

answer

A. average revenue exceeds marginal revenue.

question

Deadweight loss

answer

A. measures monopoly inefficiency.

question

One difference between a perfectly competitive firm and a monopoly is that a perfectly competitive firm produces where

answer

A. marginal cost equals price, while a monopolist produces where price exceeds marginal cost.

question

Because monopoly firms do not have to compete with other firms, the outcome in a market with a monopoly is often

answer

D. All of the above are correct.

question

For a monopolist, when does marginal revenue exceed average revenue?

answer

A. never

question

As a monopolist increases the quantity of output it sells, the price consumers are willing to pay for the good

answer

B. decreases.

1 of 15

question

Refer to Figure 15-2. Which of the following statements is correct?

answer

A. Panel C represents the typical demand curve for a perfectly competitive firm, and Panel B represents the typical demand curve for a monopoly.

question

Refer to Figure 15-4. A profit-maximizing monopoly will produce anoutput level of

answer

C. Q3.

question

Suppose most people regard emeralds, rubies, and sapphires as close substitutes for diamonds. Then DeBeers, a large diamond company, has

answer

B. less market power than it would otherwise have.

question

A monopoly market

answer

C. generally fails to maximize total economic well-being.

question

Because many good substitutes exist for a competitive firm's product, the demand curve that it faces is

answer

C. perfectly elastic.

question

For a monopoly, the level of output at which marginal revenue equals zero is also the level of output at which

answer

C. total revenue is maximized.

question

Refer to Figure 15-5. What price will the monopolist charge?

answer

B. B

question

answer

A. (i) and (ii) only

question

Refer to Figure 15-4. A profit-maximizing monopoly's total revenue isequal to

answer

A. P4 x Q3.

question

For a monopoly,

answer

A. average revenue exceeds marginal revenue.

question

Deadweight loss

answer

A. measures monopoly inefficiency.

question

One difference between a perfectly competitive firm and a monopoly is that a perfectly competitive firm produces where

answer

A. marginal cost equals price, while a monopolist produces where price exceeds marginal cost.

question

Because monopoly firms do not have to compete with other firms, the outcome in a market with a monopoly is often

answer

D. All of the above are correct.

question

For a monopolist, when does marginal revenue exceed average revenue?

answer

A. never

question

As a monopolist increases the quantity of output it sells, the price consumers are willing to pay for the good

answer

B. decreases.

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Micro Chapter 15

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