FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 15: Monopoly

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 181

Multiple Choice

Review LaterAdd Note

Review Later

Table 15-7 Sally owns the only shoe store in town. She has the following cost and revenue information. -Refer to Table 15-7. What is the total revenue from selling 6 pairs of shoes?

A) $100
B) $600
C) $625
D) $660

E) A) and B)
F) B) and D)

Correct Answer

verified

Show Answer

Question 182

True/False

Review LaterAdd Note

Review Later

The profit that a monopolist earns represents a loss to society that is measured through deadweight loss.

A) True
B) False

Correct Answer

verified

Show Answer

Question 183

Multiple Choice

Review LaterAdd Note

If a monopoly lowers its price, its

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

Scenario 15-5 An airline knows that there are two types of travelers: business travelers and vacationers. For a particular flight, there are 100 business travelers who will pay $600 for a ticket while there are 50 vacationers who will pay $300 for a ticket. There are 150 seats available on the plane. Suppose the cost to the airline of providing the flight is $20,000, which includes the cost of the pilots, flight attendants, fuel, etc. -Refer to Scenario 15-5. How much additional profit can the airline earn by charging each customer their willingness to pay relative to charging a flat price of $600 per ticket?

Table 15-7 Sally owns the only shoe store in town. She has the following cost and revenue information. -Refer to Table 15-7. What is the marginal cost of the 6th pair of shoes?

A monopoly firm is a price

Figure 15-22 -Refer to Figure 15-22. If the monopolist uses perfect price discrimination, how much profit does the firm earn?

A monopolist that can practice perfect price discrimination will not impose a deadweight loss on society.

Figure 15-22 -Refer to Figure 15-22. How much profit will this monopolist earn if it charges each consumer the same price?

For a monopoly, the socially efficient level of output occurs where

In order for a firm to maximize profits through price discrimination, the firm must have some market power and be able to prevent arbitrage.

Scenario 15-4 Suppose a monopolist has a demand curve that can be expressed as P=90-Q. The monopolist's marginal revenue curve can be expressed as MR=90-2Q. The monopolist has constant marginal costs and average total costs of $10. -Refer to Scenario 15-4. The profit-maximizing monopolist will produce an output level of

Average revenue for a monopoly is the total revenue divided by the quantity produced.

Table 15-16 A monopolist faces the following demand curve: -Refer to Table 15-16. The monopolist has total fixed costs of $40 and a constant marginal cost of $5. At the profit-maximizing level of output, the monopolist's average total cost is

Figure 15-20 -Refer to Figure 15-20. The consumer surplus at the monopolist's profit­maximizing price is

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

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

Government intervention is always preferable to doing nothing when reducing the social inefficiencies of monopoly.

Figure 15-7 -Refer to Figure 15-7. In order to maximize profits, the monopolist should charge a price of