IU Economics - B251, Gerhard Glomm
- Quiz 12 Questions and Answers
2025-2026 Set.
A monopolist faces a
1. Downward sloping marginal revenue curve above demand
2. Downward sloping marginal revenue curve that is equal to demand
3. Downward slowing marginal revenue curve that is below demand
4. Marginal revenue curve that is flat - Answer 3. Downward slowing marginal revenue curve
that is below demand
A monopsonist faces a(n)
1. Upward sloping marginal cost of hiring curve that is above supply
2. Upward sloping marginal cost of hiring that is equal to supply
3. Upward slowing marginal cost of hiring that is below supply
4. Marginal cost of hiring that is flat - Answer 1. Upward sloping marginal cost of hiring curve
that is above supply
A price ceiling in a monopoly, that is not too high, will
1. Decrease the price
2. Increase consumers' surplus
3. Increase the quantity
4. All of the above - Answer 4. All of the above
A price floor in a monopsony, that is not too high, will
1. Increase the quantity
2. Increase efficiency
, 1. Above marginal cost
2. Equal to marginal cost
3. Below marginal cost
4. Regulated - Answer 3. Below marginal cost
In Mickey Mouse Pricing with homogeneous consumers the entry fee is
1. An increasing function of the price
2. A decreasing function of the price
3. Equal to consumer's surplus
4. Smaller than consumer's surplus - Answer 1. An increasing function of the price
Selling IU basketball tickets for a game on January 23, 2022, at the same price regardless of the
purchase date
1. Encourages secondary markets for tickets
2. Increases profit for IU
3. Discourages secondary markets for tickets
4. None of the above - Answer 1. Encourages secondary markets for tickets
We see that Middling State University sells theater tickets to redheads at 20% below the price
charged to blondes. We can conclude that in absolute value
1. The price elasticity of demand for redheads is higher than for blondes
2. The price elasticity of demand for redheads is lower than for blondes
3. The two groups have the same price elasticity of demand
4. The marginal cost of a theater seat is different for the two groups. - Answer 1. The price
elasticity of demand for redheads is higher than for blondes
In a monopsony the equilibrium is given by
- Quiz 12 Questions and Answers
2025-2026 Set.
A monopolist faces a
1. Downward sloping marginal revenue curve above demand
2. Downward sloping marginal revenue curve that is equal to demand
3. Downward slowing marginal revenue curve that is below demand
4. Marginal revenue curve that is flat - Answer 3. Downward slowing marginal revenue curve
that is below demand
A monopsonist faces a(n)
1. Upward sloping marginal cost of hiring curve that is above supply
2. Upward sloping marginal cost of hiring that is equal to supply
3. Upward slowing marginal cost of hiring that is below supply
4. Marginal cost of hiring that is flat - Answer 1. Upward sloping marginal cost of hiring curve
that is above supply
A price ceiling in a monopoly, that is not too high, will
1. Decrease the price
2. Increase consumers' surplus
3. Increase the quantity
4. All of the above - Answer 4. All of the above
A price floor in a monopsony, that is not too high, will
1. Increase the quantity
2. Increase efficiency
, 1. Above marginal cost
2. Equal to marginal cost
3. Below marginal cost
4. Regulated - Answer 3. Below marginal cost
In Mickey Mouse Pricing with homogeneous consumers the entry fee is
1. An increasing function of the price
2. A decreasing function of the price
3. Equal to consumer's surplus
4. Smaller than consumer's surplus - Answer 1. An increasing function of the price
Selling IU basketball tickets for a game on January 23, 2022, at the same price regardless of the
purchase date
1. Encourages secondary markets for tickets
2. Increases profit for IU
3. Discourages secondary markets for tickets
4. None of the above - Answer 1. Encourages secondary markets for tickets
We see that Middling State University sells theater tickets to redheads at 20% below the price
charged to blondes. We can conclude that in absolute value
1. The price elasticity of demand for redheads is higher than for blondes
2. The price elasticity of demand for redheads is lower than for blondes
3. The two groups have the same price elasticity of demand
4. The marginal cost of a theater seat is different for the two groups. - Answer 1. The price
elasticity of demand for redheads is higher than for blondes
In a monopsony the equilibrium is given by
