Econ 528 | Questions with 100% Verified Answers | Latest Update
2026/2027
Question: 1. Refer to #1 sample Figure 15-4. If the monopoly firm wants to
maximize its profit, it should operate at a level of output equal
to
a. Q1.
b. Q2.
c. Q3.
d. Q4.
Answer:
Q3
Question: 2) Refer to #2 sample Figure 15-9. What is the economically
efficient output level?
A) 600 units
B) 800 units
C) 940 units
D) 1160 units
Answer:
940
Question: 3) Refer to Figure 15-10. What is the area that represents
consumer surplus under a monopoly?
A) the triangle P0P1F
B) the triangle P0P2E
C) the trapezium P1P2EF
D) the rectangle P1P3HF
Answer:
the triangle P0P1F
Question: Refer to Figure 15-10. What is the area that represents producer
surplus under a monopoly?
A) the triangle 0P2E
B) the triangle 0P3H
C) the trapezium 0P1FH
D) the rectangle P1P3HF
Answer:
the trapezium 0P1FH
, Question: Refer to Figure 15-10. The deadweight loss due to a monopoly
is represented by the area
A) FHE.
B) FGE.
C) GEH.
D) FQ1Q2E
Answer:
FHE
Question: A characteristic found only in oligopolies is
A) break even level of profits.
B) interdependence of firms.
C) independence of firms.
D) products that are slightly different.
Answer:
interdependence of firms.
Question: A cartel is
A) a temporary storage facility for automobiles.
B) a group of firms that enter into an informal agreement to fix
prices to maximize joint profits.
C) a group of firms that enter into a formal agreement to fix
prices to maximize joint profits.
D) an example of a group of firms that collectively regulate a
competitive industry.
Answer:
a group of firms that enter into a formal agreement to fix prices to maximize joint profits.
Question: What is the incentive for a firm to join a cartel?
A) to be able to earn profits in the long run but not in the
short run
B) to be able to earn larger profits than if it was not part of the
cartel
C) to completely insulate itself from competition
D) to produce a larger amount of output than if it was not part
of the cartel
Answer:
to be able to earn larger profits than if it was not part of the cartel
2026/2027
Question: 1. Refer to #1 sample Figure 15-4. If the monopoly firm wants to
maximize its profit, it should operate at a level of output equal
to
a. Q1.
b. Q2.
c. Q3.
d. Q4.
Answer:
Q3
Question: 2) Refer to #2 sample Figure 15-9. What is the economically
efficient output level?
A) 600 units
B) 800 units
C) 940 units
D) 1160 units
Answer:
940
Question: 3) Refer to Figure 15-10. What is the area that represents
consumer surplus under a monopoly?
A) the triangle P0P1F
B) the triangle P0P2E
C) the trapezium P1P2EF
D) the rectangle P1P3HF
Answer:
the triangle P0P1F
Question: Refer to Figure 15-10. What is the area that represents producer
surplus under a monopoly?
A) the triangle 0P2E
B) the triangle 0P3H
C) the trapezium 0P1FH
D) the rectangle P1P3HF
Answer:
the trapezium 0P1FH
, Question: Refer to Figure 15-10. The deadweight loss due to a monopoly
is represented by the area
A) FHE.
B) FGE.
C) GEH.
D) FQ1Q2E
Answer:
FHE
Question: A characteristic found only in oligopolies is
A) break even level of profits.
B) interdependence of firms.
C) independence of firms.
D) products that are slightly different.
Answer:
interdependence of firms.
Question: A cartel is
A) a temporary storage facility for automobiles.
B) a group of firms that enter into an informal agreement to fix
prices to maximize joint profits.
C) a group of firms that enter into a formal agreement to fix
prices to maximize joint profits.
D) an example of a group of firms that collectively regulate a
competitive industry.
Answer:
a group of firms that enter into a formal agreement to fix prices to maximize joint profits.
Question: What is the incentive for a firm to join a cartel?
A) to be able to earn profits in the long run but not in the
short run
B) to be able to earn larger profits than if it was not part of the
cartel
C) to completely insulate itself from competition
D) to produce a larger amount of output than if it was not part
of the cartel
Answer:
to be able to earn larger profits than if it was not part of the cartel
