ECONOMICS 2302 Topic 10 Monopoly Learn Assigment well answered

Topic 10 Monopoly Learnsmart 1


1. Which of the following are characteristics of a contestable firm?
 No real barriers to entry
 A single firm
2. A pure ______ is the only seller in a market
Monopoly
3. Impediments that prevent firms from entering a market or industry are known as:
Barriers to entry
4. Consider the market shown below
The deadweight loss that results from monopoly production is area
A




5. One of the roles of a government is to limit the market power of monopolies or even to
eliminate them entirely due to:
Market inefficiencies
6. A person who invents the ability to tune travel will likely operate as a _______, because
there would be no substitutes and entering that market would be difficult for anyone else.
Monopoly
7. The pure monopoly extracts all surplus from consumers, yielding higher profits than any
other pricing method when it employs which of the following?
Perfect price discrimination
First – degree price discrimination
Personal pricing




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, Topic 10 Monopoly Learnsmart 2


8. Given the information in the TABLE and GRAPH TABS, the total fixed cost faced by
the firm is $______




15
9. If the price of output is $5 per unit, and if the firm decides to produce output in the short
run, to maximize profits the firm should produce ______ units of output.
When producing at this profit – maximizing level of output, the firm will have a total loss
of $_____




6;6




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