Launchpad Learning Curve Chap 8 Econ

If James's marginal and average costs are $10, and his firm is in a perfectly competitive industry, James's maximum profit in the long run is $_____.

$0

If James's marginal and average cost is $8, the profit-maximizing price is $_____.

$12

If James's firm operates in a perfectly competitive market, consumer surplus is $_____.

$32

If the De Beers diamond monopoly lowers the price of a diamond from $800 to $750 and sales increase from 4 to 5 diamonds, the marginal revenue of the fifth diamond is $_____.

$550

If James's marginal and average costs are $10, James's maximum profit is:

$9

If the monopolist depicted in the graph switches from being a single-price monopolist to a perfectly price-discriminating monopolist, output will expand by _____ units.

4

If James's firm is a monopoly, deadweight loss is $_____.

8

if james's firm is a monopoly, consumer surplus is

8

A monopolist who practices price discrimination:

can increase profits above what would be earned without price discrimination.

If the monopolist perfectly price discriminates:

consumer surplus will be zero.

Which of the following is NOT a source of sustainable monopoly power?

decreasing returns to scale

The fact that it is a natural monopoly is revealed by the:

downward-sloping average total cost curve.

If a monopolist practices price discrimination, it will sell more units, but decrease profits. This statement is:

false.

In the fast food industry, there are many firms producing a differentiated product. This is an example of:

monopolistic competition.

True monopolies are rare in the modern American economy because:

of antitrust laws.

The automobile industry is an example of which market structure?

oligopoly

differentiated soft drinks

oligopoly

Monopoly describes a market structure in which there is/are _____ producer(s) and the product(s) is/are _____.

one; undifferentiated

What is a strategy for dealing with a natural monopoly?

price regulation

Compared to a perfectly competitive firm, a monopolist in a retail market:

produces less output.

The advantage of patents on pharmaceuticals is that they:

reward pharmaceutical researchers with profits and give them the incentive to develop new medications.

At low levels of output,:

the quantity effect dominates the price effect.

In order to successfully practice price discrimination, different groups of a monopolist's customers must have different sensitivities to price. This statement is:

true.

In the long run, monopolies earn economic profits. This statement is:

true.

Monopoly produces a net welfare loss for society. This statement is:

true.