Econ B 251 qestions and answers
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
Rent seeking by a monopolist --- the social cost of a monopoly and --- its ---
✔✔increases, cost, increases, average total cost
Which of the following are characteristics of perfect competition?✔✔many sellers,
there are no barriers to entry or exit, the market demand curve is downward sloping
The demand for corn from Hoosier farm is perfectly elastic because corn from
Hoosier farms is✔✔a perfect substitute for corn from other farms
the profit maximizing level of output for the perfectly competitive firm occurs
where✔✔price = marginal cost
Quantity (Pizzas for day)
0
1
2
3
4
5
Total cost (dollars)
$20
25
35
50
70
95
The above table shows the total cost of producing pizzas. The market for pizzas is
perfectly competitive. The equilibrium market price of a pizza is $18. Given this
information the profit maximizing output is --- pizzas✔✔3
Quantity (Pizzas for day)
0
1
2
3
4
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
Rent seeking by a monopolist --- the social cost of a monopoly and --- its ---
✔✔increases, cost, increases, average total cost
Which of the following are characteristics of perfect competition?✔✔many sellers,
there are no barriers to entry or exit, the market demand curve is downward sloping
The demand for corn from Hoosier farm is perfectly elastic because corn from
Hoosier farms is✔✔a perfect substitute for corn from other farms
the profit maximizing level of output for the perfectly competitive firm occurs
where✔✔price = marginal cost
Quantity (Pizzas for day)
0
1
2
3
4
5
Total cost (dollars)
$20
25
35
50
70
95
The above table shows the total cost of producing pizzas. The market for pizzas is
perfectly competitive. The equilibrium market price of a pizza is $18. Given this
information the profit maximizing output is --- pizzas✔✔3
Quantity (Pizzas for day)
0
1
2
3
4
