Question 1

Patents grant

Accepted Answer

A)   permanent monopoly status to creators of scientific inventions
B)   permanent monopoly status to creators of any intellectual property
C)   temporary monopoly status to creators of scientific inventions
D)   temporary monopoly status to creators of any intellectual property
E)   permanent monopoly status to natural monopoliesF) A) and B)
G) B) and C)

Question 2

The marginal revenue curve of a perfectly price-discriminating monopolist

Accepted Answer

A)   coincides with the marginal cost curve
B)   lies below the market demand curve
C)   coincides with the market demand curve
D)   is a horizontal line through the midpoint of the market demand curve
E)   does not existF) All of the above
G) A) and C)

Question 3

When an increase in a network's membership increases the product's value to users,there are

Accepted Answer

A)   network externalities.
B)   economies of scale.
C)   natural monopolies.
D)   diminishing costs.E) A) and C)
F) B) and D)

Question 4

-How much profit will the profit-maximizing level of output for the non-discriminating monopolist in Figure 10-3 yield?

Accepted Answer

A)   $10
B)   $20
C)   $30
D)   $40
E)   $50F) A) and C)
G) A) and E)

Question 5

A natural monopoly exists when

Accepted Answer

A)   economies of scale are negligible
B)   there are a few dominant firms that corner the market
C)   one firm can produce the market output at lower average cost than two or more firms can
D)   barriers to entry are low
E)   only a few firms can minimize cost and maximize profitF) B) and C)
G) A) and B)

Question 6

Which of the following conditions would prevent price discrimination?

Accepted Answer

A)   an economic profit
B)   a monopoly market structure
C)   profit maximization
D)   the inability to identify those customers willing to pay more
E)   the ability to prevent low-price customers from reselling to high-price customersF) B) and D)
G) B) and C)

Question 7

When electric utility companies lobby state legislatures for continued protection from competition,this is an example of rent-seeking behavior.

Accepted Answer

A) True 
 B)False

Question 8

-The firm in Figure 10-15 has

Accepted Answer

A)   an economic loss of $25,000
B)   an economic loss of $12,500
C)   an economic profit of $6,250
D)   neither an economic profit nor an economic loss
E)   an economic loss of $16,000F) None of the above
G) C) and D)

Question 9

Which of the following could be a barrier to entry?

Accepted Answer

A)   diseconomies of scale
B)   a large number of buyers and sellers
C)   a standardized product
D)   economies of scale
E)   diseconomies of scopeF) A) and B)
G) B) and D)

Question 10

-The profit-maximizing monopoly in Figure 10-6 does not price discriminate.It will produce

Accepted Answer

A)   0 units
B)   225 units
C)   350 units
D)   500 units
E)   none of theseF) None of the above
G) A) and E)

Exam 10: Monopoly

The marginal revenue curve of a perfectly price-discriminating monopolist

Correct Answer
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Which of the following could be a barrier to entry?

Correct Answer
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When electric utility companies lobby state legislatures for continued protection from competition,this is an example of rent-seeking behavior.

Correct Answer
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When an increase in a network's membership increases the product's value to users,there are

Correct Answer
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A natural monopoly exists when

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-How much profit will the profit-maximizing level of output for the non-discriminating monopolist in Figure 10-3 yield?

Correct Answer
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-The profit-maximizing monopoly in Figure 10-6 does not price discriminate.It will produce

Correct Answer
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Patents grant

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-The firm in Figure 10-15 has

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Which of the following conditions would prevent price discrimination?

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Exam 10: Monopoly

The marginal revenue curve of a perfectly price-discriminating monopolist

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Which of the following could be a barrier to entry?

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When electric utility companies lobby state legislatures for continued protection from competition,this is an example of rent-seeking behavior.

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When an increase in a network's membership increases the product's value to users,there are

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A natural monopoly exists when

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-How much profit will the profit-maximizing level of output for the non-discriminating monopolist in Figure 10-3 yield?

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-The profit-maximizing monopoly in Figure 10-6 does not price discriminate.It will produce

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Patents grant

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-The firm in Figure 10-15 has

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Which of the following conditions would prevent price discrimination?

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