Microecon

If a price discriminating monopoly charging a lower price to students, it is likely that the firm

(A) Believes that student demand is relatively elastic.

What would a profit maximizing do if she is currently producing where MC < MR?

(A) Increase output until MC = MR.

1. Which of the following is a difference between a monopolist and a firm in perfect competition? For the monopolist:

(A) The marginal revenue curve is downward-sloping.

Both a perfectly competitive firm and a monopolist:

(B) Maximize profit by setting marginal cost equal to marginal revenue.

Which of the following could never occur for a monopolist?

(D) All of the above are possible.

The supply for a monopoly

(D) Does not exist.

A price-discriminating monopoly charges the lowest price to the group that:

A) Has the most elastic demand.

At the point where the marginal revenue equals zero for a monopolist facing a downward-sloping straight-line demand curve, total revenue is:

B) At a maximum.

If marginal revenue is negative at a particular output, then

C) The elasticity of demand is less than one at that output.

A profit-maximizing monopoly will never produce at an output level

D) In the inelastic range of its demand curve.

Monopolists are criticized because they are inefficient. What does it mean?

D) Monopolists produce where P > MC.

(True or False) A monopolist always selects a price on the elastic portion of its demand curve.

True

(True or False) No deadweight loss results from a perfect price discriminating monopoly because the monopoly gains everything the consumer loses.

True

(True or False) When a monopoly price discriminates, it charges the highest price to the group of buyers with the least elastic demand.

True