ECON B 251 FINAL EXAM QUESTIONS AND ANSWERS GRADED 100%

ECON B 251 FINAL EXAM QUESTIONS AND ANSWERS GRADED 100% Which of the following are characteristics of a monopoly? - -the firms demand cure is downward sloping, there are high barriers to entry or exit, the firm determines the price to charge it's buyers. Which of the following are barriers to entry for a monopoly? - -patents, ownership of a vital resource, public franchises Which of the following is true for BOTH a monopoly and a perfectly competitive firm? - -The profit maximizing output level occurs where marginal revenue is equal to marginal cost The profit maximizing single price monopolist produces along the elastic portion of its demand curve - -elastic Quantity ( Pizzas per day) 0 1 2 3 4 5 Price (dollars per pizzas) $20 18 16 14 12 10 The table above shows the demand for a monopolist's output. The marginal revenue of increasing production from 3 to 4 units is $ - -6 Quantity ( Pizzas per day) 0 1 2 3 4 5 Price (dollars per pizzas) $20 18 16 14 12 10 The table above shows the demand for a monopolists output. iF the pizzeria is a single-price monopoly and the marginal cost of a pizza is $6, then the firms profit maximizing output is --- pizzas. At that amount the firm charges a price of $--- and its total revenue is $--- - -4, 12, 48 Joe, a hair dresser, offers students a discount price on haircuts. This form of pricing is an example of - -price discrimination The more perfectly a monopoly can price discriminate, the --- its output and the --- its profit. - -larger, larger compared to a similar perfectly competitive industry, a single-price monopoly decreases consumer surplus and decreases economic efficiency. - -Decreases, decreases