Chapter 15 questions

Economists assume that monopolists behave as a. cost minimizers. b. profit maximizers. c. price maximizers.

B

Price discrimination requires the firm to a. separate customers according to their willingnesses to pay. b. differentiate between different units of its product. c. engage in arbitrage. d. use coupons.

A

The monopolist's profit-maximizing quantity of output is determined by the intersection of which of the following two curves? a. marginal cost and demand b. marginal cost and marginal revenue c. average total cost and marginal revenue d. average variable cost and average revenue

B

a monopolist decreases the price of its good, consumers a. continue to buy the same amount. b. buy more. c. buy less. d. may buy more or less, depending on the price elasticity of demand

B

Which of the following statements is not correct? a. The competitive firm produces where P = MC. b. The monopolist produces where P = MC. c. The competitive firm produces where MR = MC. d. The monopolist produces where MR = MC.

B (it should be MR = MC, as P > MR for a monopolist (any q>0))

Which of the following is not an example of price discrimination? a. A movie theater charges a lower price for a child's ticket than for an adult's ticket. b. A university rebates part of the cost of tuition in the form of financial aid for needy students. c. A local pizza chain offers a "buy three get one free" deal. d. An ice cream parlor charges a higher price for ice cream than for sherbet.

D