micro 12

Refer to the graph for a profit-maximizing monopolist. The firm will set its price at:

0J

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?

30

Natural monopolies result from:

Extensive economies of scale in production

Pure monopolists:

Operate where P > MC

The data below relate to a pure monopolistic and the product it produces. What is the profit maximizing output and price for this monopolist?

P=$14; Q=4

An exclusive legal right as sole producer for 20 years granted to an inventor of a product is called a:

Patent

At the profit-maximizing level of output for a monopolist:

Price is greater than marginal cost

At equilibrium, the profit-maximizing monopolist facing the situation shown in the graph will face a negative:

Profit

If marginal costs decrease and the MC curve shifts down, a typical monopolist will:

Reduce price and increase quantity of output

One feature of pure monopoly is that the demand curve:

Slopes downward

refer to the graphs of d & mr for a monopolist. which of the following statements is true?

a price cut from P1 to P2 would lead to an increase in consumer spending on the product

one feature of pure Monopoly is that the firm is

a price maker

the following graph shows I total revenue curve for a monopolist. when total revenue declines as output expands, demand is

in elastic

a non-discriminating monopolist will find that marginal revenue:

is less than average revenue or price

Assume that a monopolist faces a linear demand curve. If the firm is operating at an output level where marginal revenue is positive, the firm:

is operating in the elastic portion of its demand curve

The supply curve for a monopoly is:

not clearly defined

Answer the question below on the basis of the following demand and cost data for a pure monopolist. At equilibrium, the monopolist will realize a:

profit of $6.50

if marginal costs decrease and the MC curve shifts down, a typical monopolist will

reduce price and increase quantity of output

refer to the graph showing a linear demand curve for a monopolist. which of the following statements is correct?

the area 0QVS is greater than the area 0RWT