Monopoly

If the monopoly firm perfectly price discriminates, then the deadweight loss amounts to..

$0

A profit maximizing monopoly will produce an output level of..

Q3

Dreher's Designer Shirt Company Figure 15-2 : What are Dreher's Designer Shirt Company's fixed costs?

$100

A monopoly firm maximizes its profit by producing Q = 500 units of output. At that level of output, its marginal revenue is $30, its average revenue is $60, and its average total cost is $34. The firm's profit-maximizing price is..

$60

Figure 15-1 : When 4 units of output are produced and sold, what is average revenue?

26

The form of legal protection intended to prevent reproduction of original works is referred to as _________ law.

copyright

Which of the following is most likely to be a monopoly?

local electricity distributor

One difference between a perfectly competitive firm and a monopoly is that a perfectly competitive firm produces where..

marginal cost equals price, while a monopolist produces where price exceeds marginal cost.

A monopolist is able to maximize its profits by..

producing output where MR = MC and charging a price along the demand curve.

Additional firms often do not try to compete with a natural monopoly because..

they know they cannot achieve the same low costs that the natural monopolist enjoys.

Figure 15-11 : If the monopoly firm is not allowed to price discriminate, then the deadweight loss amounts to...

$1,000

Dreher's Designer Shirt Company Figure 15-2 : What is total profit at the profit-maximizing quantity?

$265

A monopoly firm maximizes its profit by producing Q = 500 units of output. At that level of output, its marginal revenue is $30, its average revenue is $60, and its average total cost is $34. At Q = 500, the firm's total revenue is..

$30,000

Dreher's Designer Shirt Company: What is the total revenue from selling 8 shirts?

$720

Which area represents the consumer surplus resulting from the profit maximizing price charged by the monopolist?

A + B

What price will the monopolist charge?

B

How much output will the monopolist produce?

K

For a profit-maximizing monopolist,

P>MR=MC