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# Monopoly

question
\$20,000.
Wendy has a monopoly in the retailing of motor homes. She can sell five per week at \$21,000 each. If she wants to sell six, she can charge only \$20,000 each. The quantity effect of selling the sixth motor home is:
question
MR = MC is a profit-maximizing rule for any firm.
Which of the following is true?
question
0.90/1.00.
De Beers became a monopoly by:
question
higher; less elastic
Price discrimination leads to a ________ price for consumers with a ________ demand.
question
is always below the demand curve.
The monopolist's marginal revenue curve:
question
lower; more elastic
Price discrimination leads to a ________ price for consumers with a ________ demand.
question
downward-sloping; perfectly elastic
One of the major differences between a monopolist and a purely competitive firm is that the monopolist has a ________ demand curve, while the purely competitive firm has a ________ demand curve.
question
price-elastic
If a monopoly is producing at the profit-maximizing level of output, then we can assume that at that level of output, demand is:
question
can be increased by increasing price
If a monopolist is producing a quantity that generates MC > MR, then profit:
question
lower; more elastic
Price discrimination leads to a ________ price for consumers with a ________ demand.
question
higher; inelastic
In order to maximize profits, an airline will offer ________ prices to customers with ________ demand.
question
economies of scale
Suppose that you build a new jumbo jet that can carry five times more passengers than any other competitor. You have high fixed costs due to the quantity of capital used to build the jets. There's decreasing average cost for all levels of demand. In this case, your monopoly would result from which of the following?
question
the same as the industry's demand curve.
The demand curve facing a monopolist is always:
question
is maximized
If a monopolist is producing a quantity that generates MC = MR, then profit:
question
fall; increase
If a monopoly market structure was transformed into a perfectly competitive one, one would find that price would ________ and output would ________.
question
not change; not change
An increase in the fixed costs of a monopoly firm would ________ price and ________ quantity in the short run.
question
-\$5,000.
Wendy has a monopoly in the retailing of motor homes. She can sell five per week at \$21,000 each. If she wants to sell six, she can only charge \$20,000 each. The price effect of selling the sixth motor home is:
question
the monopoly will go out of business.
If a change in fixed cost raises average total cost above the demand curve:
question
a ban on certain kinds of advertising
Which of the following is not a barrier to entry?
question
increasing; increasing
A monopolist responds to an increase in demand by ________ price and ________ output.
question
If a monopoly is forced to charge a price equal to marginal cost:
question
price to rise, output to fall, consumer surplus to fall, producer surplus to rise, and deadweight loss to rise.
Suppose a perfectly competitive market is suddenly transformed into one that operates as a monopoly market. We would expect:
question
elastic; reductions; large increases
Because tourist demand for airline flights is relatively ________, small ________ in ticket price will result in relatively ________ in additional tourists.
question
higher prices
Because of monopoly, consumers experience ________ than with perfect competition.
question
lower levels of production
For a monopolist with a downward-sloping demand curve, the quantity effect dominates the price effect at:
question
increase profits.
A monopolist or an imperfectly competitive firm practices price discrimination primarily to:
question
eventually incur losses if MC is less than ATC.
A natural monopolist that is price regulated at the marginal cost output level will:
1 of 27
question
\$20,000.
Wendy has a monopoly in the retailing of motor homes. She can sell five per week at \$21,000 each. If she wants to sell six, she can charge only \$20,000 each. The quantity effect of selling the sixth motor home is:
question
MR = MC is a profit-maximizing rule for any firm.
Which of the following is true?
question
0.90/1.00.
De Beers became a monopoly by:
question
higher; less elastic
Price discrimination leads to a ________ price for consumers with a ________ demand.
question
is always below the demand curve.
The monopolist's marginal revenue curve:
question
lower; more elastic
Price discrimination leads to a ________ price for consumers with a ________ demand.
question
downward-sloping; perfectly elastic
One of the major differences between a monopolist and a purely competitive firm is that the monopolist has a ________ demand curve, while the purely competitive firm has a ________ demand curve.
question
price-elastic
If a monopoly is producing at the profit-maximizing level of output, then we can assume that at that level of output, demand is:
question
can be increased by increasing price
If a monopolist is producing a quantity that generates MC > MR, then profit:
question
lower; more elastic
Price discrimination leads to a ________ price for consumers with a ________ demand.
question
higher; inelastic
In order to maximize profits, an airline will offer ________ prices to customers with ________ demand.
question
economies of scale
Suppose that you build a new jumbo jet that can carry five times more passengers than any other competitor. You have high fixed costs due to the quantity of capital used to build the jets. There's decreasing average cost for all levels of demand. In this case, your monopoly would result from which of the following?
question
the same as the industry's demand curve.
The demand curve facing a monopolist is always:
question
is maximized
If a monopolist is producing a quantity that generates MC = MR, then profit:
question
fall; increase
If a monopoly market structure was transformed into a perfectly competitive one, one would find that price would ________ and output would ________.
question
not change; not change
An increase in the fixed costs of a monopoly firm would ________ price and ________ quantity in the short run.
question
-\$5,000.
Wendy has a monopoly in the retailing of motor homes. She can sell five per week at \$21,000 each. If she wants to sell six, she can only charge \$20,000 each. The price effect of selling the sixth motor home is:
question
the monopoly will go out of business.
If a change in fixed cost raises average total cost above the demand curve:
question
a ban on certain kinds of advertising
Which of the following is not a barrier to entry?
question
increasing; increasing
A monopolist responds to an increase in demand by ________ price and ________ output.
question
If a monopoly is forced to charge a price equal to marginal cost:
question
price to rise, output to fall, consumer surplus to fall, producer surplus to rise, and deadweight loss to rise.
Suppose a perfectly competitive market is suddenly transformed into one that operates as a monopoly market. We would expect:
question
elastic; reductions; large increases
Because tourist demand for airline flights is relatively ________, small ________ in ticket price will result in relatively ________ in additional tourists.
question
higher prices
Because of monopoly, consumers experience ________ than with perfect competition.
question
lower levels of production
For a monopolist with a downward-sloping demand curve, the quantity effect dominates the price effect at:
question
increase profits.
A monopolist or an imperfectly competitive firm practices price discrimination primarily to:
question
eventually incur losses if MC is less than ATC.
A natural monopolist that is price regulated at the marginal cost output level will:

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