eco

Which of the following is not a characteristic of monopoly?

Continuous economic profits

For a monopoly, the marginal revenue is below the demand curve because:

the monopoly has to lower the price on all units to sell more.

efficiency because they do not produce in such a way that their price equals their marginal cost. Listen to the complete question

allocative

A pure monopoly has the overall market

demand

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.

Suppose Carl's Candies sells 100 boxes of candy for $5 each. The total fixed cost of the 100 boxes is $100 and the average variable cost of the 100 boxes is $1.50 per box. Carl's makes a profit per unit of:

$2.50.

Using the demand schedule, what is the marginal revenue (MR) for the 10th unit?

$25

Using the demand schedule, what is the total revenue (TR) for the 15th unit?

$375

Using the graph, what price should the monopoly charge for the profit-maximizing level of output?

$6

Suppose Carl's Candies sells 100 boxes of candy for $4 each. The total fixed cost of the 100 boxes is $100 and the average variable cost of the 100 boxes is $1.50 per box. Carl's makes a profit per unit of:

1.50

Suppose Carl's Candies sells 100 boxes of candy for $5 each. The total fixed cost of the 100 boxes is $100 and the average variable cost of the 100 boxes is $1.50 per box. Carl's makes a total profit of:

250

equals the total revenue minus the total cost. (Use one word to fill in the blank.)

Blank 1: Profit or Total profit

For a monopoly, the marginal revenues per unit fall the price per unit because when the price the monopoly gives up some revenue on units it could have sold at higher prices. Listen to the complete question

Blank 1: below, under, decreases, or falls Blank 2: drops, lowers, reduces, or declines

Total revenue minus the costs and costs of production is economic profit.

Blank 1: implicit Blank 2: economic or explicit

If a monopoly wants to sell more units, it must

Blank 1: lower, reduce, or decrease

reduce the availability of goods and services and consumers' ability to buy those goods.

Blank 1: monopolies or monopoly

A monopoly should produce output until the marginal equals the marginal .

Blank 1: revenue Blank 2: cost

When a firm has a loss, the total

Blank 1: revenue Blank 2: costs or cost

For the profit-maximizing level of output, the price charged by a monopoly is not just different but greater than marginal

Blank 1: revenue or cost

Compared to an unregulated natural monopoly, what is true about the price charged and quantity produced when a natural monopoly is regulated?

Price is lower and Quantity is higher

Referring to the graph, assume the government wants to regulate the market for cable television, a natural monopoly. Match the price to the unregulated monopoly price, the regulated normal profit price, and the regulated competitive price.

Unregulated monopoly price matches Choice, $60 $60 Regulated Normal Profit price matches Choice, $40 $40 Regulated competitive price matches Choice, $30 $30

The difference between the maximum price consumers are willing and able to pay for a good or a service and the price they actually pay is the

consumer

In economics, we refer to a situation in which there is only one firm but no real barriers to entry as a(n)

contestable

Total revenue minus the implicit costs and explicit costs of production is

economic

profit is the revenue needed for a company to break even and meet operating costs without a loss.

economic

A profit-maximizing monopoly will always operate on the

elastic

If selling another unit of output increases revenue, demand is

elastic

If the marginal revenue associated with selling one more unit of output is positive, the demand is:

elastic because this would increase total revenue.

The marginal revenue is the:

extra or additional revenue associated with the production of an additional unit of output.

For the profit-maximizing level of output, the price charged by a monopoly is not just different but

greater

All firms maximize profits by producing the quantity of output at which the marginal

lank 1: revenue Blank 2: cost

The level of profit that occurs when the total revenue is less than the total cost is called an economic

loss

The extra or additional revenue associated with the production of an additional unit of output is the

marginal

Due to the market inefficiencies created by ...., one of the roles of government is to limit their market power or even to eliminate them entirely. (Use only one word to fill in the blank.) Listen to the complete question

monopolies

is a price maker engaging in nonprice competition.

monopoly

is the only seller in a market.

monopoly

produces less output than a competitive firm and therefore is likely to hire less labor. (Use only word to fill in the blank.)

monopoly

A market structure characterized by a single seller is a(n)

monpoly

The level of profit that occurs when total revenue is equal to total cost is known as

normal

profit simply indicates that the firm is doing just as well as it would have if it had chosen to use its resources to produce a different product or to compete in a different industry.

normal

Because monopolies have market power and can influence the price of the goods they sell, they tend to restrict

output, price

The ability of a monopoly to influence prices by controlling the quantities that it produces in the market is called monopoly

power

Total revenue equals:

price times quantity.

Allocative efficiency is:

producing the goods and services so that their marginal benefit equals their marginal cost.

efficiency is producing output at the lowest possible average total cost of production.

productive

equals price times quantity.

revenue

Profit equals the total minus the total .

revenue cost

The value of the economic surplus that is forgone when a market is not allowed to adjust to its competitive equilibrium is the

deadweight