BUSA 201 HW 7 Exam 2026 Questions
and Answers
The largest cattle rancher in a given region will be unable to have
a__________sufficient numbers of smaller cattle ranchers provide sources of
competition. - Correct answer-monopoly
If a seller can sell 5 units at $8 each and can sell a 6th unit separately for $7 (the
people willing to pay $8 don't learn about the reduced price), the marginal revenue
from selling the 6th unit is - Correct answer-$7
A monopolist is able to maximize its profits by - Correct answer-producing output
where MR = MC and charging a price along the demand curve.
For a pure monopoly to exist, - Correct answer-there is a single seller in a
particular industry
When marginal revenue for a seller is more than marginal cost, the seller is -
Correct answer-not maximizing net revenue.
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, If a commercial airline starts offering maxi-saver fares at huge discounts to
passengers who purchase tickets at least 30 days in advance and agree to stay over
a Saturday night, what is the most likely effect upon first-class passenger service? -
Correct answer-First-class fares will rise somewhat to compensate for the loss on
other fares.
If grocery stores in high-crime areas charge higher prices than stores elsewhere, it
is because - Correct answer-there is less competition between stores in high-crime
areas.
Following the assumption that firms maximize profits, how will the price and
output policy of an unregulated monopolist compare with ideal market efficiency?
- Correct answer-output will be too small and its price too high.
Following the assumption that firms maximize profits, how will the price and
output policy of an unregulated monopolist compare with ideal market efficiency?
- Correct answer-output will be too small and its price too high.
If a seller can sell 5 units at $8 each but can sell 6 units only by lowering the price
to $7 (and must sell all units at the same price), the marginal revenue from selling
the 6th unit is - Correct answer-$2.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
and Answers
The largest cattle rancher in a given region will be unable to have
a__________sufficient numbers of smaller cattle ranchers provide sources of
competition. - Correct answer-monopoly
If a seller can sell 5 units at $8 each and can sell a 6th unit separately for $7 (the
people willing to pay $8 don't learn about the reduced price), the marginal revenue
from selling the 6th unit is - Correct answer-$7
A monopolist is able to maximize its profits by - Correct answer-producing output
where MR = MC and charging a price along the demand curve.
For a pure monopoly to exist, - Correct answer-there is a single seller in a
particular industry
When marginal revenue for a seller is more than marginal cost, the seller is -
Correct answer-not maximizing net revenue.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, If a commercial airline starts offering maxi-saver fares at huge discounts to
passengers who purchase tickets at least 30 days in advance and agree to stay over
a Saturday night, what is the most likely effect upon first-class passenger service? -
Correct answer-First-class fares will rise somewhat to compensate for the loss on
other fares.
If grocery stores in high-crime areas charge higher prices than stores elsewhere, it
is because - Correct answer-there is less competition between stores in high-crime
areas.
Following the assumption that firms maximize profits, how will the price and
output policy of an unregulated monopolist compare with ideal market efficiency?
- Correct answer-output will be too small and its price too high.
Following the assumption that firms maximize profits, how will the price and
output policy of an unregulated monopolist compare with ideal market efficiency?
- Correct answer-output will be too small and its price too high.
If a seller can sell 5 units at $8 each but can sell 6 units only by lowering the price
to $7 (and must sell all units at the same price), the marginal revenue from selling
the 6th unit is - Correct answer-$2.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
