ECON 300 EXAM 3 QUESTIONS AND CORRECT
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2026 UPDATE
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Terms in this set (68)
Which of the following is the best D. the firm's ability to price above marginal cost
measure of a firm's market power?
A monopolist's supply curve: C. does not exist
If a firm has market power and C. consumer surplus is lower, producer surplus is
marginal cost is constant relative to higher, and total surplus is lower
perfect competition:
In order to maximize profit, a B. produces the quantity where marginal revenue
monopolist: equals marginal cost
If market demand is perfectly D. has no market power
elastic, then a monopolist:
, If the market demand equation is Q B. MR = 10 - Q
= 20 - 2P, the monopolist's marginal
revenue equation is:
If the total cost function of a B. natural monopoly
monopolist is TC = 200 + 20Q, then
the primary barrier to entry that
supports the firm's position is likely:
If the government imposed a direct A. the regulation could cause the firm to shut
price regulation that did not allow a down production
natural monopoly with constant
marginal cost to charge a price
higher than under perfect
competition:
If demand becomes more price A. the price and quantity are unchanged in
elastic but the quantity demanded perfect competition but different if the firms have
at the current price does not market power.
change:
If market demand is P = 1,000 - 5Q A. $16
and a monopolist has a constant
marginal cost of $200, then the
deadweight loss resulting from
monopoly is:
If demand becomes more price B. is smaller
elastic and marginal cost is
constant, the gain in producer
surplus a firm receives from having
market power:
If market demand is perfectly C. has the greatest possible amount of market
inelastic, then a monopolist: power
ANSWERS WITH COMPLETE SOLUTION | NEW
2026 UPDATE
Save
Terms in this set (68)
Which of the following is the best D. the firm's ability to price above marginal cost
measure of a firm's market power?
A monopolist's supply curve: C. does not exist
If a firm has market power and C. consumer surplus is lower, producer surplus is
marginal cost is constant relative to higher, and total surplus is lower
perfect competition:
In order to maximize profit, a B. produces the quantity where marginal revenue
monopolist: equals marginal cost
If market demand is perfectly D. has no market power
elastic, then a monopolist:
, If the market demand equation is Q B. MR = 10 - Q
= 20 - 2P, the monopolist's marginal
revenue equation is:
If the total cost function of a B. natural monopoly
monopolist is TC = 200 + 20Q, then
the primary barrier to entry that
supports the firm's position is likely:
If the government imposed a direct A. the regulation could cause the firm to shut
price regulation that did not allow a down production
natural monopoly with constant
marginal cost to charge a price
higher than under perfect
competition:
If demand becomes more price A. the price and quantity are unchanged in
elastic but the quantity demanded perfect competition but different if the firms have
at the current price does not market power.
change:
If market demand is P = 1,000 - 5Q A. $16
and a monopolist has a constant
marginal cost of $200, then the
deadweight loss resulting from
monopoly is:
If demand becomes more price B. is smaller
elastic and marginal cost is
constant, the gain in producer
surplus a firm receives from having
market power:
If market demand is perfectly C. has the greatest possible amount of market
inelastic, then a monopolist: power
