ECON B 251 FINAL LATEST
EXAM
In comparison with a perfect competitive, single-price monopolist with
the same costs creates a ---- consumer surplus and earns a ---- economic
profit - ANSWERS-smaller, larger
Which of the following is characteristic of oligopoly, but NOT of
monopolistic competition? - ANSWERS-The choices made by one firm
have a significant effect on other firms
The owner of a proprietorship might decide incorporate the firm as a
corporation in order to - ANSWERS-gain limited liability
In the show run, a firm will - ANSWERS-produce and incur an
economic loss if its total revenue covered its total variable cost but not
its total cost
An unregulated monolpoly will - ANSWERS-produced in the elastic
range of it demand curve
A single-price monopolist will find when it produces it profit-
maximizing amount of output that - ANSWERS-All of other options
occur at the profit-maximizing output level
END OF
PAGE
1
, ECON B 251 FINAL LATEST
EXAM
The fundamental reason a single-price monopoly creates a deadweight
loss is that it - ANSWERS-reduces the elasticity of demand
Which of the following are characteristics of a monopoly? -
ANSWERS-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? -
ANSWERS-patents, ownership of a vital resource, public franchises
Which of the following is true for BOTH a monopoly and a perfectly
competitive firm? - ANSWERS-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 - ANSWERS-elastic
Quantity ( Pizzas per day)
0
END OF
PAGE
2
, ECON B 251 FINAL LATEST
EXAM
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 $ -
ANSWERS-6
Quantity ( Pizzas per day)
0
1
END OF
PAGE
3
, ECON B 251 FINAL LATEST
EXAM
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 $--- - ANSWERS-
4, 12, 48
Joe, a hair dresser, offers students a discount price on haircuts. This form
of pricing is an example of - ANSWERS-price discrimination
END OF
PAGE
4
EXAM
In comparison with a perfect competitive, single-price monopolist with
the same costs creates a ---- consumer surplus and earns a ---- economic
profit - ANSWERS-smaller, larger
Which of the following is characteristic of oligopoly, but NOT of
monopolistic competition? - ANSWERS-The choices made by one firm
have a significant effect on other firms
The owner of a proprietorship might decide incorporate the firm as a
corporation in order to - ANSWERS-gain limited liability
In the show run, a firm will - ANSWERS-produce and incur an
economic loss if its total revenue covered its total variable cost but not
its total cost
An unregulated monolpoly will - ANSWERS-produced in the elastic
range of it demand curve
A single-price monopolist will find when it produces it profit-
maximizing amount of output that - ANSWERS-All of other options
occur at the profit-maximizing output level
END OF
PAGE
1
, ECON B 251 FINAL LATEST
EXAM
The fundamental reason a single-price monopoly creates a deadweight
loss is that it - ANSWERS-reduces the elasticity of demand
Which of the following are characteristics of a monopoly? -
ANSWERS-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? -
ANSWERS-patents, ownership of a vital resource, public franchises
Which of the following is true for BOTH a monopoly and a perfectly
competitive firm? - ANSWERS-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 - ANSWERS-elastic
Quantity ( Pizzas per day)
0
END OF
PAGE
2
, ECON B 251 FINAL LATEST
EXAM
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 $ -
ANSWERS-6
Quantity ( Pizzas per day)
0
1
END OF
PAGE
3
, ECON B 251 FINAL LATEST
EXAM
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 $--- - ANSWERS-
4, 12, 48
Joe, a hair dresser, offers students a discount price on haircuts. This form
of pricing is an example of - ANSWERS-price discrimination
END OF
PAGE
4
