Ch12

Refer to the graphs of D and MR for a monopolist. Which of the following statements is true?

A price cut from P1 to P2 would lead to a decrease in the amount of dollars consumers spend on the product.

Refer to the graph, which shows a linear demand curve for a monopolist. Which of the following statements is correct?

The price elasticity of demand is less at U than at V.

Refer to the demand and cost data for a pure monopolist given in the table. If the monopolist perfectly price-discriminated and sold each unit of the product at the maximum price the buyer of that unit would be willing to pay, and if the monopolist sold 4 units, then total revenue would be

Tried 600

Answer the question on the basis of the provided demand and cost data for a pure monopolist.

Tried 8.5

If the industry depicted in this graph were purely competitive, the output quantity would be

Tried 90

In the graph, what is the profit-maximizing level of output for this pure monopolist?

Tried D

Refer to the diagram for a pure monopolist. If a regulatory commission seeks to achieve the socially optimal allocation of resources to this line of production, it will set a price of

Tried P 1

If the industry depicted in this graph were served by a pure monopoly, the price and output quantity would be

Tried P1 and Q3

Refer to the provided graph for an industry. If the industry was initially a monopoly, but the monopolist was broken up into a large number of small, purely competitive firms and production cost-curves remained unchanged, then market price and industry output would be

Tried P1 and Q3

Refer to the graph for a pure monopoly. If the government regulated the monopoly and made the firm set a fair-return price, what price and quantity levels would we observe in the short run?

Tried P2 and Q 3

Which is true of a price-discriminating pure monopolist?

Tried The average price will be higher than in the nondiscrimination case

Refer to the graph, which shows a total revenue curve for a monopolist. The firm's marginal revenue curve must be

Tried U shape

When the value of a product to each user, including existing users, increases due to an increase in the total number of users—as in the case of Facebook—we refer to this as

Tried income transfer

Pure monopoly refers to

any market in which the demand curve for the firm is downsloping.

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

increase price and decrease production.

A pure monopolist's short-run profit-maximizing or loss-minimizing position is such that price

tried equal marginal revenue

Refer to the diagrams. The demand for Firm B's product is

perfectly elastic over all ranges of output.