Question 1

In response to a cost-reducing technological breakthrough in the production of its product, a profit-maximizing monopolist will normally

Accepted Answer

A)  increase price and decrease production.
B)  not change its level of output or price.
C)  decrease the price it charges for its product.
D)  increase its output and practice price discrimination.E) None of the above
F) All of the above

Question 2

Refer to the two diagrams for individual firms. Figure 1 pertains to __________, while Figure 2 refers to ________.

Accepted Answer

A)  an imperfectly competitive firm; a purely competitive firm
B)  a purely competitive firm; an imperfectly competitive firm
C)  an oligopolist; a monopolistically competitive firm
D)  a pure monopolist; a monopolistically competitive firmE) All of the above
F) A) and B)

Question 3

Based on the accompanying table, how many units would the given profit-maximizing nondiscriminating pure monopolist produce?

Accepted Answer

A)  4
B)  3
C)  2
D)  1E) B) and D)
F) C) and D)

Question 4

Suppose that a pure monopolist can sell 47 units of output at $16 per unit and 48 units at $15.80 per unit. The marginal revenue of the 48th unit of output is

Accepted Answer

A)  $15.80.
B)  $758.40
C)  $6.40.
D)  $0.20.E) B) and C)
F) All of the above

Question 5

Refer to the demand and cost data for a pure monopolist given in the table. An unregulated, nondiscriminating monopolist would maximize profits at a price and quantity of

Accepted Answer

A)  $250 and 2 units.
B)  $200 and 3 units.
C)  $150 and 4 units.
D)  $100 and 5 units.E) A) and B)
F) A) and C)

Question 6

"Big data" collection by online firms about buyers and their behaviors allows the firms to practice

Accepted Answer

A)  fair-return pricing.
B)  socially optimal pricing.
C)  price discrimination.
D)  price regulation.E) All of the above
F) C) and D)

Question 7

Possible reasons for X-inefficiency include the following, except

Accepted Answer

A)  managers having other goals besides maximizing profits.
B)  workers being poorly motivated or poorly supervised.
C)  costs of materials rising due to tight supply conditions.
D)  the firm being lethargic due to the absence of competition.E) All of the above
F) A) and D)

Exam 12: Pure Monopoly

Suppose that a pure monopolist can sell 47 units of output at $16 per unit and 48 units at $15.80 per unit. The marginal revenue of the 48th unit of output is

Correct Answer
verified

Refer to the demand and cost data for a pure monopolist given in the table. An unregulated, nondiscriminating monopolist would maximize profits at a price and quantity of

Correct Answer
verified

Based on the accompanying table, how many units would the given profit-maximizing nondiscriminating pure monopolist produce?

Correct Answer
verified

Refer to the two diagrams for individual firms. Figure 1 pertains to __, while Figure 2 refers to .

Correct Answer
verified

Possible reasons for X-inefficiency include the following, except

Correct Answer
verified

In response to a cost-reducing technological breakthrough in the production of its product, a profit-maximizing monopolist will normally

Correct Answer
verified

"Big data" collection by online firms about buyers and their behaviors allows the firms to practice

Correct Answer
verified

Exam 12: Pure Monopoly

Suppose that a pure monopolist can sell 47 units of output at $16 per unit and 48 units at $15.80 per unit. The marginal revenue of the 48th unit of output is

Correct AnswerverifiedShow Answer

Refer to the demand and cost data for a pure monopolist given in the table. An unregulated, nondiscriminating monopolist would maximize profits at a price and quantity of

Correct AnswerverifiedShow Answer

Based on the accompanying table, how many units would the given profit-maximizing nondiscriminating pure monopolist produce?

Correct AnswerverifiedShow Answer

Refer to the two diagrams for individual firms. Figure 1 pertains to __________, while Figure 2 refers to ________.

Correct AnswerverifiedShow Answer

Possible reasons for X-inefficiency include the following, except

Correct AnswerverifiedShow Answer

In response to a cost-reducing technological breakthrough in the production of its product, a profit-maximizing monopolist will normally

Correct AnswerverifiedShow Answer

"Big data" collection by online firms about buyers and their behaviors allows the firms to practice

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Refer to the two diagrams for individual firms. Figure 1 pertains to __, while Figure 2 refers to .

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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