Micro Econ Chapter 9 OER

Refer to the above graph for a monopolist in short-run equilibrium. To maximize profit or minimize loss this monopolist will charge a price of: A B C Not labeled on the graph

B

Refer to the above graph for a monopolist in short-run equilibrium. This firm will: earn a profit represented by the area ADBE earn a loss represented by the area ADBE earn a profit represented by the area of BECF earn a loss represented by the area of BECF

The ATC is at A and the Price is at point B meaning there will be a loss represented by the area ADBE

The table shows the demand schedule facing Nina, a monopolist selling baskets. What is the change in total revenue if she lowers the price from $20 to $18? $10 $20 $30 $40

$30

Refer to the graph above for an industry. If the industry had a pure monopoly, to maximize profit the product price would be: lower than 8 8 14 16

16

Refer to the graph above for an industry. If the industry had a pure monopoly, the output quantity to maximize profit would be: 90 160 195 A level that is not labeled in the graph

90

Refer to the above graph for a monopolist in short-run equilibrium. To maximize profit or minimize loss this monopolist will charge a price of: A B C Not labeled on the graph

A

Which of the following is NOT true about the demand curve of a monopolist? The firm's demand curve is the same as the market demand curve. The demand curve is downward sloping. The demand curve is perfectly elastic. The marginal revenue curve is below the market demand curve.

The demand curve is perfectly elastic.

Which is a characteristic of a monopoly? has no barriers to entry has potential for long-run economic profit sells a differentiated product has no control over price

has potential for long-run economic profit

Natural monopolists usually experience: constant return to scales large diseconomies of scales large economies of scales

large economies of scales

If it is not profitable for more than one firm to operate within an industry because of high fixed costs, we have an example of: monopoly due to ownership of key resources. monopoly due to governmental entry restrictions. pure competition monopoly due to economies of scale.

monopoly due to economies of scale.