ap micro monopoly test

Under which of the following situations would a monopolist increase profits by lowering price (and increasing output):

if it discovered that it was producing where MC < MR

A pure monopolist is selling 6 units at a price of $12. If the marginal revenue of the seventh unit is $5, then:

price of the seventh unit is $11.

For an imperfectly competitive firm:

the marginal revenue curve lies below the demand curve because any reduction in price applies to all units sold.

Confronted with the same unit cost data, a monopolistic producer will charge:

a higher price and produce a smaller output than a competitive firm.

A pure monopolist is producing an output such that ATC = $4, P = $5, MC = $2, and MR = $3. This firm is realizing:

an economic profit that could be increased by producing more

Assume a pure monopolist is currently operating at a price-quantity combination on the inelastic segment of its demand curve. If the monopolist is seeking maximum profits, it should:

charge a higher price.

When a firm is on the inelastic segment of its demand curve, it can

increase profits by increasing price.

The non-discriminating pure monopolist's demand curve:

is the industry demand curve.

A natural monopoly occurs when:

long-run average costs decline continuously through the range of demand.

With respect to the pure monopolist's demand curve it can be said that

price exceeds marginal revenue at all outputs greater than 1.

Suppose for a regulated monopoly that price equals minimum ATC but price exceeds MC. This means that:

productive efficiency is being achieved, but not allocative efficiency.

If a pure monopolist can price discriminate by separating buyers into two or more groups:

the firm will face multiple marginal revenue curves.

If a non-discriminating imperfectly competitive firm is selling its 100th unit of output for $35, its marginal revenue:

will be less than $35.