G202 Exam 2 KREFT Preparation Complete Questions with
Detailed Verified Answers (100% Correct Answers) /Already
Graded A+
Quiz Below is a table of information on a local monopolist's Sales Quantity, Price, and Total
Cost.
Quantity Price Total
Cost
0 45 0
1 40 20
2 35 40
3 30 60
4 25 80
5 20 100
What is the monopolist's profit maximizing price (Pf)?
A. $35.
B. $30.
C. $25.
D. $20.
Ans: Answer: B: $30
,Qiz Below is a table of information on a local monopolist's Sales Quantity, Price, and Total Cost.
Quantity Price Total
Cost
0 45 0
1 40 20
2 35 40
3 30 60
4 25 80
5 20 100
What is the monopolist's socially efficient quantity (Qe)?
A. 2.
B. 3.
C. 4.
D. 5.
Ans: Answer: D: 5
Qiz To achieve the socially efficient equilibrium, a firm with market power should
A. set a sales target where MR=MC and then markup price over costs according to demand
for the firm's product.
B. set a sales target where D=MC and then markup price over costs according to demand for
the firm's product.
C. set a sales target where MR=MC and then set price equal to marginal cost at that output
level.
, D. set a sales target where D=MC and then set price equal to marginal cost at that output
level.
Ans: Answer: D: set a sales target where D=MC and then set price equal to marginal cost at that
output
level.
Qiz When compared to the efficiently competitive industry, the firm with significant market
power produces
A. too few units, giving up some units that would normally have more productive cost than
consumer value.
B. too few units, giving up some units that would normally have more consumer value than
productive cost.
C. too many units, as some units produced will have more consumer value than productive
costs.
D. too many units, as some units produced will have more productive costs than consumer
value.
Ans: Answer: B: too few units, giving up some units that would normally have more consumer
value than
productive cost.
Qiz When firms are imperfectly price discriminating (charging different prices to different
segmented groups of consumers), which of the following statements is true?
A. Over a given range of production, producer surplus increases as the number of segmented
consumer groups increases.
Detailed Verified Answers (100% Correct Answers) /Already
Graded A+
Quiz Below is a table of information on a local monopolist's Sales Quantity, Price, and Total
Cost.
Quantity Price Total
Cost
0 45 0
1 40 20
2 35 40
3 30 60
4 25 80
5 20 100
What is the monopolist's profit maximizing price (Pf)?
A. $35.
B. $30.
C. $25.
D. $20.
Ans: Answer: B: $30
,Qiz Below is a table of information on a local monopolist's Sales Quantity, Price, and Total Cost.
Quantity Price Total
Cost
0 45 0
1 40 20
2 35 40
3 30 60
4 25 80
5 20 100
What is the monopolist's socially efficient quantity (Qe)?
A. 2.
B. 3.
C. 4.
D. 5.
Ans: Answer: D: 5
Qiz To achieve the socially efficient equilibrium, a firm with market power should
A. set a sales target where MR=MC and then markup price over costs according to demand
for the firm's product.
B. set a sales target where D=MC and then markup price over costs according to demand for
the firm's product.
C. set a sales target where MR=MC and then set price equal to marginal cost at that output
level.
, D. set a sales target where D=MC and then set price equal to marginal cost at that output
level.
Ans: Answer: D: set a sales target where D=MC and then set price equal to marginal cost at that
output
level.
Qiz When compared to the efficiently competitive industry, the firm with significant market
power produces
A. too few units, giving up some units that would normally have more productive cost than
consumer value.
B. too few units, giving up some units that would normally have more consumer value than
productive cost.
C. too many units, as some units produced will have more consumer value than productive
costs.
D. too many units, as some units produced will have more productive costs than consumer
value.
Ans: Answer: B: too few units, giving up some units that would normally have more consumer
value than
productive cost.
Qiz When firms are imperfectly price discriminating (charging different prices to different
segmented groups of consumers), which of the following statements is true?
A. Over a given range of production, producer surplus increases as the number of segmented
consumer groups increases.
